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Uber, Lyft to stop operations in Minneapolis over minimum wage law

reuters.com

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Re: Uber, Lyft to stop operations in Minneapolis over minimum wage law

#2
“Wage theft” what? It’s very transparent what you are getting paid and what the deal is when you drive for uber or lyft.

Argue all you want for thinking that law makers should be setting special wages for specific industries. Personally i think they should stay out of it but man i would be mad as someone living in the city that these services are no longer available.

Re: Uber, Lyft to stop operations in Minneapolis over minimum wage law

#3
post #2

“Wage theft” what? It’s very transparent what you are getting paid and what the deal is when you drive for uber or lyft. Argue all you want for thinking that law makers should be setting special wages for specific industries. Personally i think they should stay out of it but man i would be mad as someone living in the city that these services are no longer available.

If you think you're mad as a consumer, imagine all the Uber/Lyft drivers who no longer have any income because the government has made it uneconomical for their employer to do business in their city.

Re: Uber, Lyft to stop operations in Minneapolis over minimum wage law

#5
post #3
post #2

“Wage theft” what? It’s very transparent what you are getting paid and what the deal is when you drive for uber or lyft. Argue all you want for thinking that law makers should be setting special wages for specific industries. Personally i think they should stay out of it but man i would be mad as someone living in the city that these services are no longer available.

If you think you're mad as a consumer, imagine all the Uber/Lyft drivers who no longer have any income because the government has made it uneconomical for their employer to do business in their city.

If they can't pay even minimum wage, it was already uneconomical and being subsidized by government welfare.

Re: Uber, Lyft to stop operations in Minneapolis over minimum wage law

#6
post #3
post #2

“Wage theft” what? It’s very transparent what you are getting paid and what the deal is when you drive for uber or lyft. Argue all you want for thinking that law makers should be setting special wages for specific industries. Personally i think they should stay out of it but man i would be mad as someone living in the city that these services are no longer available.

If you think you're mad as a consumer, imagine all the Uber/Lyft drivers who no longer have any income because the government has made it uneconomical for their employer to do business in their city.

Or maybe it's a splash of reality for those businesses that have relied on undercompensated labor and VC money to acquire market share.

Re: Uber, Lyft to stop operations in Minneapolis over minimum wage law

#7
I suggest reading the report by the Minnesota Department of Labor [0].

Some interesting pulls from the summary:

> Census data and the driver survey indicate the majority of Minnesota TNC drivers are male immigrants and predominantly Black or African American non-Hispanic workers with less than a four-year college degree; many live in low-income households (up to 200% of the federal poverty level) and, relative to all Minnesota workers, are disproportionately reliant on public assistance.

> Nearly half (45 percent) of those driving for Uber and Lyft are relatively casual drivers averaging fewer than 10 hours per week and providing only 11 percent of all trips. The focus here is on the committed, non-casual driver since they are more likely to rely on TNC driving as a primary source of income and provide the majority of trips.

> Median earnings for all Twin Cities metro area drivers were $50.04 on a gross passenger time (P3) basis, $29.64 on a gross working hours basis (P1+P2+P3), and $13.63 on a net, after-expense working hours basis. Twenty-five percent of drivers had net, after-expense hourly earnings of $10.54 or less, and 25 percent of drivers had net after-expense hourly earnings of $17.51 or more.

> The Minnesota per minute rate is designed to compensate drivers at the equivalent of the minimum wage, plus the employer share of federal Social Security and Medicare payroll tax: ($15.57 Minneapolis minimum wage plus $1.28 in payroll tax in the Twin Cities metro area, and $10.85 state minimum wage plus $0.89 in payroll tax for the Greater Minnesota counties). The Minnesota base per mile rate provides for the 63.8 cents per mile cost of acquiring, operating, and maintaining a vehicle based on Minnesota-specific costs from early 2024.

> Applying the 2024 base rate pay standard per minute and per mile rates to the hours worked and miles driven during 2022 indicates that average pay per trip for Twin Cities drivers would rise by about 10 percent under the base pay standard, and by about 17 percent on average for Greater Minnesota drivers.

0: https://dli.mn.gov/sites/default/files/pdf/TNC_driver_earnin...

Re: Uber, Lyft to stop operations in Minneapolis over minimum wage law

#8
post #3

Earlier quoted context omitted.

If you think you're mad as a consumer, imagine all the Uber/Lyft drivers who no longer have any income because the government has made it uneconomical for their employer to do business in their city.

If they can't pay even minimum wage, it was already uneconomical and being subsidized by government welfare.

How is that true? Plenty of people work minimum wage jobs that aren't subsidized by government welfare.

If someone has a roommate or a partner or a parent or a child that supports them?

There are some jobs that are only economically viable at a certain wage, and anything beyond that makes it not economically viable. So those jobs won't exist.

Re: Uber, Lyft to stop operations in Minneapolis over minimum wage law

#9
post #3
post #2

“Wage theft” what? It’s very transparent what you are getting paid and what the deal is when you drive for uber or lyft. Argue all you want for thinking that law makers should be setting special wages for specific industries. Personally i think they should stay out of it but man i would be mad as someone living in the city that these services are no longer available.

If you think you're mad as a consumer, imagine all the Uber/Lyft drivers who no longer have any income because the government has made it uneconomical for their employer to do business in their city.

that is the dirty truth. All of those feel-good minimum wage laws are in fact stealing wages from those workers. Those workers were OK to work for those wages before the law. Now they have nothing.

The result is now higher unemployment and use of tax-dollar to subsidize those people.

Re: Uber, Lyft to stop operations in Minneapolis over minimum wage law

#10
post #3

Earlier quoted context omitted.

If you think you're mad as a consumer, imagine all the Uber/Lyft drivers who no longer have any income because the government has made it uneconomical for their employer to do business in their city.

If they can't pay even minimum wage, it was already uneconomical and being subsidized by government welfare.

They offer a service and you can choose to drive for them. This in a lot of cases helps people make extra money or hold them over. But you think it’s better to let the government remove this option?

I just can’t get onboard with this thinking. I understand it for W2 jobs but for freelance and pick your own hours it does not make sense.

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