Rideshare drivers across Minnesota got a pay raise Sunday when a new law governing minimum wages kicked in, and it comes after local Uber and Lyft drivers pushed for nearly two years to get better compensation and job protection.
The new rates could also bring up to a 25% increase in trip fees for riders, Uber spokeswoman Freddi Goldstein said in an email, “though pricing is always subject to change,” she said.
State law now requires rideshare companies to pay drivers $1.28 per mile and an additional 31 cents per minute while passengers are in the vehicle. Drivers will receive a minimum of $5 per trip and 80% of any cancellation fee charged to riders who call off a trip after a driver is on the way to pick them up. On top of that, rideshare drivers will also earn extra pay if transporting a rider in a wheelchair-accessible vehicle.
Tips are not included in the minimum pay calculations.
Under the law, rideshare drivers have the potential to make more money, as much as 20% more, DFL leaders said in the spring before the legislation passed. But not all drivers are convinced they will.
A provision in the law allows Transportation Network Companies (TNCs) to average a driver’s earnings over a two-week period and pay them the minimum on that average. If a driver’s average is below the mandated rate, the companies will provide a top-off payment to bring drivers up to the minimum pay, according to a posting on Uber’s blog.
That does not sit well with some metro area drivers.
The law “is absolutely not beneficial to the drivers,” said Prince Lee, who drives for both Uber and Lyft in the Twin Cities area. “We need $1.28 paid straight for every ride.”