Lyft and Uber said they will cease operations in Minneapolis after the city’s council voted Thursday to override a mayoral veto and require that ride-hailing services increase driver wages to the equivalent of the local minimum wage of $15.57 an hour.
Lyft called the ordinance “deeply flawed,” saying in a statement that it supports a minimum earning standard for drivers but not the one passed by the council.
Minimum wage is still exploitation given that the drivers provide all their own equipment, cover their own costs, and get no sick leave or holiday pay. Typically, self-employment is paid at an hourly rate 2.5x the salaried rate because of all the extra costs the employer is not covering.
Minimum wage for ‘self-employed’ gig workers should be $35-40. Pass that law.