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Lyft and Uber said they will cease operations in Minneapolis after the city’s council voted Thursday to override a mayoral veto and require that ride-hailing services increase driver wages to the equivalent of the local minimum wage of $15.57 an hour.

Lyft called the ordinance “deeply flawed,” saying in a statement that it supports a minimum earning standard for drivers but not the one passed by the council.

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[-] FederatedSaint@lemmy.world 5 points 8 months ago

I don't know the economics, truly, but there are a LOT more expenses involved in running a large business like Uber on top of driver wages, such as technology service and hardware costs, programmers and central admin/customer service, rent or cost of buildings including utilities, insurance, taxes, fees, consulting and auditing, cybersecurity, legal, and probably quite a bit more I can't think of. Running a business is friggin expensive.

Definitely not defending paying workers less, just trying to explain why they still might not be in the black even in your scenario.

[-] Daft_ish@lemmy.world 2 points 8 months ago

They shouldn't even exist in the space since they skirted regulators when setting up. It's like if the pirate bay set themselves up as a legitimate business.

this post was submitted on 15 Mar 2024
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