Lyft and Uber threatened to stop doing business in Minneapolis after the city council adopted a new rule Thursday that would set a minimum wage for rideshare drivers.
Lyft and Uber threatened to stop doing business in Minneapolis after the city council adopted a new rule Thursday that would set a minimum wage for rideshare drivers.
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Exactly. I envision them threatening to leave, but ultimately not taking the revue hit by raising prices for the end users.
I don't agree with profits over everything. I anticipate the public narrative blaming the drivers or politicians for them exiting the market, but in my opinion its their own corporate greed thats pushing them out. This is unfair and people shouldn't be vilified for standing up for workers rights.
It's like when Amazon threatened to leave NY when AOC was campaigning for higher minimum wage over there or whatever it was. I forget the exact details, but the point is that it ended up being a bluff and of course they stayed.
I don't keep up with Uber news, but do they still not consider their drivers to be actual employees, but rather 1099 workers? Either way that company can go to hell.
Okay bye bye. It’s not like they suddenly take all the drivers and their cars with them. Are they forgetting what business they are in? All they do is match drivers with passengers. Some other scrappy startup can easily fill that gap when they leave. Uber became only big because of first mover advantage and cut throat capitalism. Their tech is not groundbreaking.
While I think this should pass, don't hold your breath. Mayor Frey will probably veto it. He's a very moderate, business friendly Democrat and our governor also vetoed a similar bill from the state legislature earlier this year. Right or wrong, they are concerned that any disruption of Uber/Lyft services would be extremely detrimental to people who depend on them. Public transportation in MN is really bad and this is one of the major ways people get around.
Right or wrong, they are concerned that any disruption of Uber/Lyft services would be extremely detrimental to people who depend on them. Public transportation in MN is really bad and this is one of the major ways people get around.
Having come from Iowa, the twin cities public transit is more than adequate for most commuters, and I strongly disagree with it being "really bad". I'm honestly aghast at the suggestion that people might use Uber of Lyft with enough regularity to impact day-to-day commuting. My wife elects to use the public buses into downtown from the suburbs out of convenience, even though her work provides downtown parking if she wanted it. Not saying it'll have NO impact, but frankly I don't think it'll have much of one.
That's a weird reaction. Why not just ignore the bill entirely? It's not like a municipality has any viable enforcement mechanism against what amounts to a smartphone app.
It's at least worth pointing out that Uber in particular broke several laws to establish themselves in various markets and never suffered any real punishment.
Government: We believe that you need to pay your workers more because we feel like it's not enough.
Companies: The workers agreed to the pay when they signed on. If you make us pay them more, we cannot afford to pay the workers without raising our rates to levels that people don't want to pay for.
Government: You will pay them more money.
Companies: We can't afford to do that so we will be pulling out of this area and now they will make exactly $0 and now people have fewer transportation options.
Government: We did it, we successfully raised people's earnings to $0! pats self on back for a job well done
Sure they do, they can fine them and if they don't comply they can go to state court to get it enforced. Individuals may be able to flout overdue tolls or traffic tickets or whatever for a while, but it's extremely easy to impose a fine on a public corporation.