Minn. Gov. vetoes pay raise for drivers after Uber, Lyft threaten price hikes

Enlarge (credit: Michael M. Santiago / Staff | Getty Images North America)

Days after Minnesota Uber and Lyft drivers celebrated the passing of ridesharing legislation that would have increased their pay and protections, the state’s governor, Tim Walz, vetoed the bill. Now Minnesota drivers are outraged, claiming that the governor bowed to “scare tactics.” They vowed to keep fighting against alleged abuse to create better worker conditions in the state.

Walz’s veto is his first in five sessions as Minnesota’s governor and came hours after Uber threatened to pull out of nearly all Minnesota markets and only offer premium products in areas where services remained, The Star Tribune reported. Lyft had also threatened to create “transportation deserts” if the bill became law.

Authored by Minnesota Senator Omar Fateh, the ridesharing legislation would have kicked in July 1, 2024, and forced Uber and Lyft to pay drivers $1.45 per mile and 34 cents per minute in the state’s busiest counties. Outside that area, drivers would have received minimum compensation of $1.25 per mile and 34 cents per minute. It also guaranteed a minimum fee of $5 for any transportation provided.

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