Rideshare increases signed into law in Minnesota

(The Center Square) –Uber or Lyft rides in Minnesota might get more expensive.

Gov. Tim Walz recently signed into law a bill that would require all rideshare drivers to be paid $1.28 per mile, and $0.31 per minute of travel. All drivers must be compensated at minimum $5 per trip.

While the bill is meant to better compensate drivers, a similar plan in Seattle showed troubles for some small businesses. In January, the Seattle City Council voted into effect a $0.74 per mile, $0.44 per minute wage for delivery drivers. This equated to at least $26.40 per hour, higher than the $19.97 city minimum wage.

After just a month, local Indian takeout restaurant SpiceWaala reported a 30% decrease in sales from the same time in 2023. A $9 chicken tikka kathi roll now costs $19 on DoorDash before tip.

Lt. Gov. Peggy Flanagan expressed no concern, touting at the bill signing that it’s a step toward fair wages.

“Uber and Lyft are vital services that Minnesotans across the state rely on every day,” Flanagan said. “Rideshares get people to doctor’s appointments, work, and school and are a vital stopgap for those who lack other forms of transportation. Those providing these services deserve fair wages and protections.”