Uber, Lyft Drivers Get 20% Pay Raise, Strong Insurance In Minnesota

Government officials in Minnesota announced Saturday that they have reached an agreement with Uber and Lyft to establish minimum wage standards for drivers.

This agreement marks the resolution of nearly a year-long negotiation process between Democratic state officials and the two rideshare companies. The negotiations were prompted by a proposed Minneapolis ordinance aimed at providing increased worker protections to rideshare drivers.

Initially adopted in August 2023, the proposed ordinance sought to ensure fair pay for contract workers, including those working for digital platforms like DoorDash, Instacart, Uber, and Lyft. It mandated a minimum payment of $1.40 per mile and $0.51 per minute for drivers.

However, Lyft and Uber had threatened to cease operations in Minneapolis if the ordinance was enforced. In response, state lawmakers engaged in discussions to find a compromise with the companies before a looming July 1 deadline.

Under the terms of the newly reached agreement, rideshare drivers across the state will now be subject to a minimum wage rate of $1.28 per mile and $0.31 per minute. This statewide rule supersedes the higher rate proposed by the Minneapolis City Council.

State Democratic House Majority Leader Jamie Long emphasized that the blended rate results in a 20% increase in pay for drivers statewide. The agreement also includes what Long described as the "strongest insurance provision for drivers in the entire country."

Democratic Senate Majority Leader Erin Murphy highlighted the balance needed to address the needs of both employees and the residents who depend on rideshare services for transportation.

In response to the agreement, Uber's policy director Josh Gold expressed appreciation for the thousands of riders and drivers who voiced their concerns to legislators. “We applaud the tens of thousands of riders & drivers who sent close to 100,000 emails to legislators — your voices were heard. While the coming price increases may hurt riders and drivers alike, we will be able to continue to operate across the State under the compromise brokered by the Governor,” Gold said in a statement.