Uber and Lyft made a deal to raise drivers’ wages. It was another victory for big tech
Minneapolis struck a deal with the companies, but it preserves integral parts of their model, allowing the firms to undermine the compromise later
Who came out ahead when the Minneapolis city council announced a deal with Uber and Lyft to increase driver pay and improve working conditions last month?
On 20 May, the city council heralded a compromise with the ride-hailing companies. Uber and Lyft would agree to an inflation-pegged wage floor matching Minnesota’s minimum wage of $15 an hour after expenses. Some lawmakers have hailed this as a 20% raise for drivers – however, the deal’s pay rates are lower than almost every proposal made over the past two years amid a bitter fight between Uber, Lyft, their drivers and lawmakers.
Drivers, often arbitrarily fired (“deactivated”) by opaque algorithms, are now able to appeal against dismissals. There’s also funding for a “non-profit driver center” for driver rights education. The real gem may be the expansion of insurance coverage requirements for ride-hail drivers up to $1m that now includes the time immediately after ending a trip, which will help drivers with medical costs and lost wages after assaults or accidents.
This deal, however, preserves integral parts of the digital ride-hail model, allowing Uber and Lyft to continue operating and undermine the compromise later.
