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Uber, Lyft increased driver minimum wage now in effect

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Published  December 1, 2024 9:57pm CST
Uber
FOX 9

New Uber/Lyft law takes effect

A new state law in effect now gives Uber and Lyft drivers a raise for every mile and minute they drive. It’s something drivers were looking forward to, but passengers have mixed feelings about.

The Brief

    • The increased minimum wage for Uber and Lyft drivers is now in effect in Minnesota.
    • After a state law was passed, ride-hailing drivers will now get paid $1.28 per mile and 31 cents per minute.
    • Uber says that riders could see a 25% increase in ride costs in the state.

MINNEAPOLIS (FOX 9) - A new state law in effect now gives Uber and Lyft drivers a raise for every mile and minute they drive. It’s something drivers were looking forward to, but passengers have mixed feelings about.

But not every Uber and Lyft driver saw their pay increase through the app, with Uber saying it will show on Monday. But as for riders jumping in the car, it will cost more money for an Uber or Lyft to compensate drivers for the new wages they will get. 

"Usually it's about $25 to $30 to get from here [to] home. Today, I saw it as high as $55 for the lowest on Uber," said rider Michael Elsbernd.

Elsbernd noticed the cost difference right away on his ride home from the Minneapolis-St. Paul International Airport, which is about 10 miles away. 

Uber and Lyft drivers will now get $1.28 per mile and 31 cents per minute starting Sunday. 

"They're going to make very good money. I'm not sure if an Uber driver is worth 80 bucks an hour if you add all that up together," said Elsbernd. 

But some passengers are willing to pay extra. 

"I mean, the price hike is a little sad, but we'll get over it," said Lynee Nelson.  

An Uber spokesperson said that rider could expect a 25% increase in ride prices. 

Despite customers seeing rides cost more on Sunday, drivers haven’t seen a pay increase yet. 

"Since it's Sunday, the payroll closes on Sundays, and the new payroll begins every Monday," said Uber and Lyft Driver Said Mohamed.

Uber did share this statement with drivers:

"There will be a partial earnings period for Sunday, December 1, 2024." 

Lyft told FOX 9 in part:

"It has begun tracking Minnesota driver earnings to ensure they are getting compensated appropriately under the new law."

While Uber and Lyft driver Mohamed understands customers he drives around will pay more. He’s looking forward to making more money. 

"We used to get about 65 cents per mile, you know. So $1.28 and 31 cents, that's probably about a 25% to 30% increase," said Mohamed. 

This was a long time in the making. At first, the Minneapolis City Council was going to pass a city ordinance, until its implementation got delayed. Then, state lawmakers passed a bill with Gov. Tim Walz signed it into state law, and it came into fruition Sunday.