According to media reports, US lawmakers in Minnesota reached an agreement with online car-hailing giants Uber (UBER.US) and Lyft (LYFT.US) to set minimum wage standards for online ride-hailing drivers.
The Zhitong Finance App learned that according to media reports, US lawmakers in Minnesota reached an agreement with online car-hailing giants Uber (UBER.US) and Lyft (LYFT.US) to set minimum wage standards for online ride-hailing drivers. It is expected that this move will prevent the two major online car-hailing platforms and ride-hailing drivers from leaving the state.
According to information, Uber and Lyft have previously threatened to withdraw their online ride-hailing business from Minnesota because a proposed law in the state may give ride-sharing drivers more worker protection measures.
Under the new agreement, the minimum wage for ride-hailing drivers statewide in Minnesota will be $1.28 per mile and $0.31 per minute. According to CNN, the rule would overturn the higher pay standard schedule initially proposed by the Minnesota State Assembly.
According to media reports, Minnesota Democratic House Majority Leader Jamie Lang told reporters on Saturday night local time: “When you use it as a mixed rate standard, this ultimately increases the salary of online ride-hailing drivers in Minnesota by about 20%.”
Jamie Lang added that the bill also includes “providing the strongest insurance provisions for online ride-hailing drivers in the state.”
If the bill becomes law in Minnesota, the new standard wage ratio will take effect in January next year.
The online car-hailing business continues to provide the core driving force for Uber and Lyft's performance. This is also the main logic of the two companies' efforts to keep American online ride-hailing drivers on the platform and push more American drivers to join the online car-hailing platform. According to financial reports, Uber's total bookings in the first quarter increased 20% year over year to reach 37.7 billion US dollars. This mainly included online car-hailing services, takeout orders, driver and merchant revenue, but did not include tips. Competitors' results in the last quarter, including Lyft and DoorDash (DASH.US), also grew and exceeded Wall Street's expectations.