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Published on December 02, 2024
Minnesota Rideshare Drivers Reap Benefits of Increased Minimum Wage as Fare Prices SurgeSource: Unsplash/Erik Mclean

The roads of Minnesota now travel in a different economic lane with the enforcement of the increased minimum wage for Uber and Lyft drivers. As reported by FOX 9, these drivers are now compensated at $1.28 per mile and 31 cents per minute of drive time. This statewide change stems from a law that aimed to give a lift to ride-hailing drivers' paychecks.

Users of these services immediately experienced the cost implications of this legislation. "Usually it's about $25 to $30 to get from here [to] home. Today, I saw it as high as $55 for the lowest on Uber," Michael Elsbernd told FOX 9. This price hike, linked to the new wage standards, represents a predicted 25% increase according to Uber spokespeople. The change triggered diverse reactions from passengers—some were dismayed by the extra cost, others showed a willingness to adapt for the sake of supporting drivers.

While the rate increase delighted many drivers, not everyone saw the uptick through their apps immediately. "Since it's Sunday, the payroll closes on Sundays, and the new payroll begins every Monday," Uber and Lyft driver Said Mohamed explained in an interview with FOX 9. Lyft assured they are tracking Minnesota driver earnings to ensure compliance with the new law.

Looking beyond individual rides and into the structure that facilitates this connection between driver and passenger, KARE 11 detailed the provisions of the law. Among them, companies must now give drivers an additional 91 cents a minute if they're operating a wheelchair-accessible vehicle. Not only does the legislation enforce minimum pay, but it also ensures greater pay transparency and necessitates the provision of detailed summaries of drivers' earnings.

This legislative shift was no sudden detour. It took a year of stakeholder meetings and negotiations spearheaded by the Department of Labor and Industry (DLI) before reaching the finish line. "Our agency is now working to educate drivers and work with the TNCs, so the law works as intended," said Nicole Blissenbach, DLI commissioner, according to KARE 11. With these regulations now in the driver's seat, Minnesota’s rideshare landscape is steering towards fairer compensation and clearer communication for all involved parties.