Weekly Round-Up: Lyft and Uber Are Staying In Minnesota
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After months of back and forth and threats to leave the state, Uber and Lyft have reached an agreement with the Minnesota lawmakers.
Meanwhile, an Atlanta police officer has been arrested for fatally shooting a Lyft driver. A study shows that many rideshare drivers earn less than minimum wage, and Uber has a $2,820 offer.
Join RSG Contributor Paula Lemar as she breaks down the top headlines in this week’s rideshare news.
Uber and Lyft Agree To Stay In Minnesota After Top Democrats Reach Statewide Driver Pay Deal
Summary
Uber and Lyft would stay in Minnesota — and many drivers would get a pay raise — under a new deal on statewide rideshare legislation Gov. Tim Walz and DFL lawmakers announced late Saturday night.
Why it matters: If Walz signs it into law, the deal would culminate two years of relentless activism by a group of committed rideshare drivers.
Many of them are working-class immigrants who say their compensation from Uber and Lyft often doesn’t cover their expenses.
Catch up quick: The rideshare services had threatened to leave Minnesota over proposals to set a minimum pay rate for rideshare drivers statewide.
My Take
I’m glad they finally came to an agreement. Assuming the governor signs it into law, drivers in Minnesota will now be guaranteed a minimum rate of $1.28 per mile and $0.31 per minute. While it’s a lower rate than originally agreed upon, it’s a rate that apparently Uber and Lyft are ok with.
If I decide to drive for either platform again, it’s nice to know I’ll be getting a minimum pay at least somewhat close to what I had been getting when I started to drive for them back in 2016.
I hope that with this change Uber and Lyft don’t try to punish the drivers in other ways, but instead just pay their new wage and let them be.
I’m sure some of the newly created rideshare companies will continue to get traction as well, especially if they offer better benefits than Uber and Lyft. It’s a big enough market for everyone to share.
Atlanta Police Officer Arrested In Fatal Shooting Of Lyft Driver
Summary
A former Atlanta police officer is accused of fatally shooting a Lyft driver this week, and afterward, he reportedly told a witness he believed the driver was kidnapping him, according to an arrest warrant affidavit.
Union City Police arrested Atlanta police officer Koby Minor Wednesday, according to a news release from the Atlanta Police Department. Minor resigned from the department later that day.
Minor was charged with murder and aggravated assault after shooting his Lyft driver, a release from the Union City Police Department said.
The Lyft driver was identified by authorities as Reginald Folks and was pronounced dead at the scene. The affidavit said he was shot in the head.
My Take
That sounds like a difficult situation to read. I don’t think the driver should have been fatally shot, personally, but if you’re trapped in a car and can’t get out, I’m sure I’d have done almost anything to exit the vehicle. Without dash cam evidence, it’ll just be the now former police officer’s word against whatever evidence is collected from the crime scene.
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How would you react if you thought you were being kidnapped by an Uber or Lyft driver?
Many Drivers For Uber, Lyft, And DoorDash Are Earning Well Below Minimum Wage, Even With Tips, A New Paper Finds
Summary
Many Americans looking to make at least their local minimum wage might be unable to count on gig driving as their primary income source.
Researchers at the UC Berkeley Labor Center and the Center for Wage and Employment Dynamics analyzed 52,370 trips by 1,088 drivers in the Boston, Chicago, Los Angeles, San Francisco Bay, and Seattle metros in January 2022.
They found that drivers across six ride-hailing and delivery platforms often earned less than the local minimum wage, including with tips, after expenses like gas.
The researchers used data from the rideshare and delivery assistance app Gridwise to examine drivers who worked ten or more hours.
To be sure, many drivers on these platforms work just a few hours a week, and the researchers’ results may not apply to those drivers. Nearly half of the drivers drove for multiple apps, and 42% of non-DoorDash drivers worked 32 hours or more a week.
My Take
Is this really all that surprising? This data just backs up the fact that delivery drivers are relying heavily on their tips to make up for poor pay.
With tipping culture the way it is in the U.S., it seems almost standard to assume that delivery drivers will get tips to supplement their income, much like several service industry folks.
But then, this mindset leads delivery drivers to pick and choose what jobs they take based on the tip amounts. As they say, no tip, no trip. Without the promise of a tip, most deliveries aren’t even worth the thought.
What it all boils down to is these companies are just trying to increase their profits as much as possible while treating their drivers like garbage. These companies wouldn’t even have a business if it weren’t for the drivers willing to work for them. The least they can do is give them a decent wage.
Is This $2,820 Uber Guarantee Worth Your Time?
Uber guarantees can be enticing, but are they always worth your time? Senior RSG Contributor, Sergio Avedian, breaks down his latest offer from Uber, a 260 ride guarantee of $2,820, and tips on how on to hit the goal if you do take the offer. . . . . . . Uber rideshare gigeconomy sidehustles
Uber guarantees can be enticing, but are they always worth your time? Senior RSG Contributor Sergio Avedian breaks down his latest offer from Uber, a 260-ride guarantee of $2,820, and tips on how to hit the goal if you do take the offer.
Must Listen Or Watch RSG Content
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