The ride-share wars have heated up to a boiling point in Minneapolis, with Uber and Lyft threatening to pull out of the city if a proposed fare increase is not passed. The city council is proposing to raise the fare for ride-share bookings from $0.50 to $1.01, a move that is drawing ire from both companies.
If the proposal is passed, it could mean the end of Uber and Lyft in Minneapolis. While other major cities have already implemented such fare increases, Uber and Lyft argue that the increase is too high and it would make ride-sharing unaffordable for some. The companies also argue that the increase would not generate the revenue that the city expects.
But the city council is not backing down from its stance. It argues that the fare increase will help to compensate its drivers, many of whom are struggling financially due to the Covid-19 pandemic. Moreover, the city says that the fare increase will help improve the city’s quality of life and the environment, citing less traffic, fewer emissions, and less congestion on the roads as benefits of a fare increase.
Ultimately, it will be up to the city council to decide the fate of Uber and Lyft in Minneapolis. Should the proposal pass, the two popular ride-share companies could be forced to leave Minneapolis over a difference of just 51 cents. It’s a harsh reality, but one that is playing out between cities and ride-share companies all across the country.
Hey Subscribe to our newsletter for more articles like this directly to your email.