Uber and Lyft vowed to still operate in Minnesota even after their legal battle against the state over the proposed wage increase for delivery drivers.
In a statement via The Hill, Uber and Lyft promised to continue to operate in Minnesota even though the wage increase "may hurt riders and drivers alike."
(Photo : Michael M. Santiago/Getty Images)
The statement came after the Senate passed the bill that will raise the minimum pay rate for Uber and Lyft drivers to $1.28 per mile and 31 cents per minute.
The bill overrides an earlier Minneapolis proposal to bring the minimum wage to $1.40 per mile and 51 cents per minute, or $5 per ride, to which the delivery services objected.
The bill is set to take effect in January after Minnesota Gov. Tim Walz signs the law.
Last month, Uber and Lyft threatened to leave Minneapolis if the city's proposed wage increase was passed, a statement many local delivery drivers protested against.
Also Read: App-Employed Delivery Workers Will Soon Get $18 per Hour as Minimum Wage in NYC
Minnesota Delivery Drivers Commend Minnesota's Wage Increase
With a compromise finally made, Minnesota delivery drivers commended the legislation as a way to improve the livelihood of many delivery drivers in the state.
In a statement to the Associated Press, Eid Ali, president of the Minnesota Uber/Lyft Drivers Association, said the agreement between the two parties is "an amazing victory for drivers."
The state's delivery drivers have long protested for a wage increase in Minnesota as other states like New York and Seattle have already established laws to improve the wages of their food delivery workers.
It is worth noting, however, that the other states' wage increase was also met with pushback from the companies.
The wage change has since caused the affected delivery services to revise their tipping system with DoorDash moving the entire system to its app.
Related Article: New York Customers Can Now Only Tip DoorDash Drivers Via App
More States Pose for Delivery Drivers Wage Increase
With the looming success in Minnesota, more states are expected to follow the three states' steps as food delivery services become more popular.
California has earlier employed similar methods with a full $20 wage increase for all fast-food workers, including in-house delivery drivers.
According to recent data surveys, food delivery services are estimated to contribute $353.30 billion to the US economy in 2024 as more people move towards online shopping.
