Recently, things have happened that have made it hard to say what will happen to Uber and Lyft in the future.
Ride-sharing companies were told by the city that they would have to pay drivers more per hour if they were working in the city. Because of this, Uber and Lyft said they would be ending their ride-sharing services in those places.
They said that the ride-sharing deal would end at the start of next month. The move has caused a lot of debate, and many people are wondering what it means for people who depend on ride-sharing services.
Many people were in favor of the higher hourly rate for drivers because they thought it would make sure they were paid the city’s minimum wage, which is a little more than $15 an hour.
“Drivers are people with families, and they deserve a living wage like everyone else,” said Council Member Jamal Osman, who helped write the changes. “The Minneapolis City Council will not let the East African community, or any community, be exploited for cheap labor.”
A lot of people wanted the rates to go up, but after more research, it was found that many drivers already make more than the minimum wage, so they didn’t need to pay as much as they wanted.
Even though Uber and Lyft said they could handle the rate hike, they will still be leaving the market at the start of next month. Many people live in the metro area, so ride-sharing companies can make a lot of money there.
Uber has said they will stop running their business in all of Minneapolis. Lyft, on the other hand, said they would still serve the airport area but not go any further.
It’s not the first time these companies have left a market. A few years ago, both of them left Austin, Texas, because the city wanted to use fingerprint-based background checks on drivers as a safety measure.
