Minnesota Gov. Tim Walz (D) vetoed a bill Thursday that would have set minimum pay rates for Uber drivers.
, which was sent to Walz on Sunday after passing the state House and Senate, would have required digital ride-hailing companies like Uber and Lyft to pay drivers a $5 fee and at least $1.45 per mile—or $1.25 per mile outside the Twin Cities area—as well as $0.34 per minute for any time spent driving customers.
Hours before the veto, Uber threatened to halt service outside of the Minneapolis-St. Paul area and only offer “premium products”—along with premium prices—in the metro area starting August 1 if the bill was enacted.the proposal “will make it impossible to continue serving most areas of the state,” arguing the pay hikes would cause demand for Uber to plummet.
Goldstein said the company had tried to work with lawmakers for “several months” to create legislation that would provide “flexibility and benefits to drivers without compromising service for riders,” but the requests went unanswered.to offer higher wages and more benefits to ride-hailing drivers and other gig economy workers.
the Minnesota Reformer that he can’t predict the future if Uber greatly reduced services in terms of jobs that would be lost, but argued the governor should sign the bill because “it’s the right thing to do.”
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