Uber & Lyft refuse to pay Minneapolis' minimum wage

so they are shutting down their operations there.

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We will see what really happens over the next 6 wks or so.

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Why would this be a problem? The people can simply go back to using regular taxicabs and phones to call for dispatch.

~ It would be more expensive for the people
~ The people would have fewer choices
~ The uber/lyft drivers get screwed out of a gig job choice they made voluntarily

DB2

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The people voted for this city council, so presumably this is what they want more or less. Similarly, the people voted that labor worth under $15.67 an hour is not permitted in their city, so anyone whose labor is worth lower than that is not permitted to work there.

Not really. The taxi fleet has been all but eliminated due to Uber/Lyft.

“A spokesperson for Minneapolis said 39 cab drivers are currently licensed to work in the city. In January 2014, there were 1,948.”

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Oh, it’ll come back rather quickly once uberlyft is gone. Heck, there will suddenly be a ton of drivers available, so taxi companies will have a wide choice of drivers!

No. They won’t. What company would invest in all the infrastructure of a taxi company (cars, etc.) if they know there is a chance the city and Uber/Lyft will reach an agreement and they will come back? I would not invest one dime of my own money in something like that.

There are things to not like about traditional taxis. But I have never liked the exploitive employment nature of the “gig” economy.

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Ahhh, therein lies the rub. They obviously would need some sort of contract with the city (as existed in many cities) that uberlyft would be kept out for some specified period of time, maybe 5-10 years or so.

And if “yellow” dispatched taxis don’t some back quickly enough, instead you will see semi-licensed, or unlicensed, cars available for that purpose. Those existed in NYC (“car services”) even while taxis existed because NYC artificially limited the number of taxis and the need for hired transport was MUCH greater than the number of taxicabs available.

Cruise n Waymo must be scrambling to take advantage.
As “robo” the “minimum wage” doesn’t apply?

Come ON Tesla! Here’s the opportunity! Put FSD V.12.4 in play!

:grinning:
ralph

Is Cruise still operating?

Beats me.
Google is our friend?
The ‘news’ suggests that GM Cruise MIGHT be finding a way back to operating on the streets?
Heads have rolled at GM Cruise.
GM’s Cruise Cleans House, Fires 9 More Execs (businessinsider.com)

Was that enough? IDK. But, with the $B$ in play, do you think Cruise is gonna just ‘roll over’ and give up the potential $s?

I don’t.

There was a ‘YouTube rumor’ a couple weeks ago that Cruise had entered agreements to get back on the streets. I just saw the ‘head line’. IDK if it was real or not.
Bing/Copilot aint showing me that ‘news’ though. so… IDK.

But, if Cruise IS OUT… and Uber/Lyft are also OUT… then more for Waymo? And Tesla, if Tesla can ‘get in the game’?

Buy Google/Alphabet?

:slight_smile:
ralph

There’s the YT rumor.
:person_shrugging: I still DK what’s really happening.
ralph

If you’re Jonesn for a robo taxi investment idea, you might look at GOOG for a large Cap more or less “stable” horse, or at TSLA for a Wilder ride.

And in Seattle…

In 2022, Seattle’s City Council passed an ordinance mandating a minimum earnings floor for app-based food delivery drivers in the city. The law finally went into effectin January 2024, but so far the main result has been customers deleting their delivery apps en masse, food orders plummeting, and driver pay cratering.

The ordinance, part of a legislative package called “PayUp,” was passed under the banner of protecting gig workers. By setting a compensation floor for app-based delivery drivers based on miles driven and amount of time worked, the ordinance operates as a (supremely complicated) minimum wage…

Local news station King 5 reported that Seattle residents started deleting their delivery apps from their phones in response to the spiking exorbitant delivery prices. Uber Eats experienced a 30-percent decline in order volume in the city, while DoorDash reported 30,000 fewer orders within just the first two weeks of the ordinance taking effect…

In turn, this decrease in demand directly impacted the pocketbooks of the delivery drivers themselves. A driver who made $931 in a week this time last year saw his earnings drop by half to $464.81 in a comparative week this year. Another reportedconsistently making $20 an hour prior to the ordinance, only to see his earnings likewise fall by more than half since its enactment…

In addition to drivers, those who have been hardest hit include local mom and pop restaurants that have seen delivery orders dry up, and even the city’s elderly and disabled population who often depend on affordable delivery options for meals.

DB2

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Who could have guessed that moving the price away from the market clearing equilibrium point would discombobulate the supply/demand relationship? Maybe Seattle’s City Council should hire some artificial intelligence to supplement theirs.

Dear ChatGPT, what happens when we raise prices? Will food delivery guys and dolls be better off?

The Captain

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Facing the prospect of Uber and Lyft abandoning their city in a few weeks, Minneapolis’s city council voted unanimously on Thursday to push back the implementation of a new rideshare pay policy by two months.

DB2

Seems like they are realizing that a business that cannot produce adequate profit cannot exist for very long. Did any of them propose “Government run rideshare” yet?

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Only if they can be the ones collecting the fat “management” fees for running such a govt-subsidized system.