Are Uber & Lyft Bluffing - Will They Leave Minneapolis?
Join RSG contributor Sergio as he shares Uber's and Lyft's threat to Minneapolis.
Game on!?
Uber and Lyft, the two titans of ridesharing, have announced their decision to cease operations in Minneapolis as of May 1, 2024!?
Are they bluffing??
Are there any backroom dealings at the State legislator level??
Will a new bill brought by Minnesota State Republicans precede the Minneapolis City Council ordinance? A lot of unanswered questions remain.?
This move comes as a shock to many residents who have come to rely on these services for their daily transportation needs.?
The departure of Uber and Lyft raises questions about the future of urban transportation in Minneapolis and highlights the challenges faced by ridesharing companies in today's regulatory environment.
Minneapolis Mayor Jacob Frey vetoed this bill as he had done with a similar ordinance a few months ago but this time MULDA (Minnesota Uber Lyft Drivers Association) had majority support in the city council and the mayor’s veto was overridden after which Uber/Lyft immediately vowed to leave the state on May 1, 2024!
The Rise of Ridesharing in Minneapolis
Uber and Lyft first entered the Minneapolis market about 8 years ago, promising to revolutionize urban transportation. Like in thousands of other cities, their app-based platforms offered convenience, affordability to passengers, and flexibility to drivers.?
For many residents, ridesharing became the go-to option for getting around the city, offering an alternative to traditional taxis and public transportation.?
When May 1 rolls around, will all these Riders get stranded??
How did all Uber/Lyft passengers get around before Rideshare was an option??
We talked about all this with the President of MULDA, Eid Ali (pictured above), during a previous SMTMC Episode!
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The Impact of Uber and Lyft's Exit
As far as I'm concerned, the decision by Uber and Lyft to pull out of Minneapolis has immediate and far-reaching consequences.?
Approximately 3000 drivers who relied on ridesharing as their primary source of income are now facing an uncertain future.
?According to the state-sponsored report, these full-time drivers will need to find alternative employment opportunities in a city still recovering from the economic effects of the pandemic.
For riders, the loss of Uber and Lyft means less access to affordable and convenient transportation options.?
While traditional taxis and public transportation are still available, they may not offer the same level of convenience or affordability that ridesharing did.?
This could disproportionately affect low-income residents as well as people with disabilities who rely on ridesharing as their primary mode of transportation.
The Regulatory Environment
The decision by Uber and Lyft to leave Minneapolis can be traced back to the city's regulatory environment.?
In recent years, Minneapolis has passed a series of ordinances aimed at regulating ridesharing companies more closely.?
These ordinances included requirements for driver background checks, vehicle inspections, and a minimum wage for drivers.?
Why is that important??
Take a look at the chart below; driver earnings nationwide have been declining since Q2 of 2021, according to Uber’s own blog!
One of the major findings of the state-sponsored report showed that 89 cents a mile and 49 cents a minute would equal minimum wage pay for drivers in Minneapolis, but who can live on minimum wage in any city these days??
What about profitability??
What broke the camel's back was the $1.40 a mile and 51-cent rate card the City Council ordinance approved.?
According to the rideshare companies, this would increase the rates for riders to unsustainable levels and kill the demand for trips.
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My Conclusion
The departure of Uber and Lyft from Minneapolis marks the end of an era in urban transportation.?
While ridesharing promised to revolutionize the way we get around cities, its sudden departure has exposed the fragility of that promise.?
As Minneapolis navigates the void left by ridesharing, city leaders will need to explore innovative solutions to meet the transportation needs of their residents.?
Whether through the expansion of public transportation or the promotion of alternative modes of transportation, the challenge will be to create a transportation system that is convenient, affordable, and sustainable for all stakeholders.?
As far as I am concerned, there is time to salvage a terrible situation.?
Drivers, legislators, and Rideshare companies have to come to the table, let cooler heads prevail, and negotiate in good faith. No one wins if Uber/Lyft leaves Minneapolis!
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Uber Driver
8 个月Would you leave?