Uber, Lyft threaten to stop operations in Minneapolis if mandatory driver raises become law



Uber and Lyft are threatening to shut down operations in Minneapolis, Minnesota, on May 1 if a proposed driver raise ordinance becomes law, Fox Business reported.

The Minneapolis City Council approved the rideshare ordinance on Thursday by a 9-4 vote. Minneapolis Democratic Mayor Jacob Frey vetoed the measure on Friday over concerns that Uber and Lyft would leave the city.

Frey has been pushing city council members to hold off on approving the ordinance until a state study from the Minnesota Department of Labor and Industry is completed or to lower the driver raises to rates acceptable to the rideshare companies.

"I've been telling the council for six months now to wait for the data to come out," Frey stated, according to the Star Tribune.

The state's study, ordered by Democratic Governor Tim Walz, found that rideshare drivers earn an average of 48.7 cents per minute and 89 cents per mile in the Twin Cities metro area. Drivers operating in the Greater Minnesota region earn 42.7 cents per minute and $1.116 per mile.

Uber called the report "deeply flawed" but noted that "it clearly recognizes that drivers are independent contractors," KARE reported.

"With the State and, most importantly, drivers agreeing that flexibility is critical, any compromise must prioritize independent contractor status," an Uber spokesperson said.

The spokesperson claimed the "Minneapolis minimum wage proposal is off by a whopping 60%."

Lyft called the state's report "nonsensical."

"The only part of this report that is grounded in reasonable data is its conclusion that Minnesota rideshare drivers earn more than $52 per hour of giving rides," a Lyft spokesperson remarked. "This study is dishonest, counterproductive, and a disservice to the goal of meaningful policymaking."

If the ordinance is passed into law, rideshare drivers would make at least $5 per ride and receive 80% of canceled rides.

Lyft claims that the pay hike would nearly double rates for passengers. The company urged customers to sign a petition opposing the ordinance.

The city council currently has the votes to override the mayor's veto and pass the measure into law. If Frey can convince one council member to switch his or her vote, his veto could not be repealed.

Council member Jason Chavez, who voted to secure driver raises, stated, "Small businesses are required to pay minimum wage before tips, and it's clear that multibillion-dollar out-of-state tech companies should be too."

"No company should be above the law. Relying on low-income riders to subsidize Uber and Lyft paying drivers' wages is an economic and racial injustice," Chavez added.

A recent statement from Uber read, "Uber supports comprehensive statewide legislation that guarantees drivers $35/hr minimum earnings while working and protects their flexibility and independence. If this ordinance is enacted, we look forward to working with drivers, riders and the legislature to bring rideshare back."

"The [City Council] hijacked a state process that proposed real solutions and is in the process of analyzing data to inform a workable earnings standard," Uber continued. "The state's task force made a series of recommendations that should be legislated and collected real data to come up with an appropriate minimum earnings standard."

Lyft noted that it is "committed to working with any stakeholders on a more sustainable and thoughtful policy solution, but if this particular proposal becomes law, it will force Lyft to cease operations in the City on May 1."

"We support a minimum earnings standard for drivers, but it must be done in a way that allows the service to sustainably and affordably operate for riders. For the second time in less than a year, the bill sponsors have willfully chosen to ignore offers to collaborate, instead choosing to rush through the most extreme figures possible," Lyft added. "We implore Mayor Frey to veto this legislation and instead join our efforts to pass a statewide minimum earnings standard that can balance the needs of all."

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Amazon is adding a 'fuel and inflation surcharge'



This past Wednesday, Amazon announced that for the first time in the company’s history, it will be charging sellers a “5% fuel and inflation surcharge.”

According to CNN Business, the new fee is being imposed because “inflation has worsened significantly in recent months.”

In a company-wide memo, Amazon said, “In 2022, we expected to return to normalcy as Covid-19 restrictions around the world eased, but fuel and inflation have presented further challenges.”

“It is unclear if these inflationary costs will go up or down, or how long they will persist,” the company said.

Patrick Graham, a spokesperson for the company, said that the fee surcharge applies only to fee rates paid by sellers that choose to use Amazon’s fulfillment services. These services include the storage, packing, and shipping of products.

Reportedly, sellers who do not use Amazon’s fulfillment services will not be impacted.

Amazon’s fee is the latest example of how businesses are reacting to soaring energy costs and the general increased cost of goods and services due to inflation.

Last month, Lyft — the popular ridesharing service —announced that it was adding a surcharge of 55 cents to each ride given in order to offset the surging price of gasoline.

ABC News reported that all of the money being generated through this surcharge will be given directly back to Lyft’s drivers and that it would remain in place for “at least the next 60 days.”

In mid-March, Uber announced a similar initiative to that of their competitor. Uber announced that it would tack on a 45 to 55 cent surcharge on all of its rides and add a 35 to 45 cent surcharge on all Uber Eats deliveries.

However, drivers said the surcharge reimbursements they would be receiving from their employers weren’t enough.

According to a blog from “The Rideshare Guy,” 43% of Uber and Lyft drivers said they were driving less or quitting their rideshare gigs because of the rising cost of fuel.

These rising costs, and the little relief drivers received, prompted them to organize a protest in front of Uber’s Manhattan headquarters.

The new surcharge Amazon is implementing on its sellers could trickle down and affect consumers as retailers seek to pass along the rising cost of hosting their businesses on Amazon.

The Bureau of Labor Statistics said that suppliers raised their prices by 11.2% in March as inflation raised 8.5% year-over-year.

In the company-wide memo, Amazon said, “Like many, we have experienced significant cost increases and absorbed them, wherever possible, to reduce the impact on our selling partners. When we did increase fees, we were focused on addressing permanent costs and ensuring our fees were competitive with those of other service providers.”

NYC Uber drivers protest rising gas prices, demand relief



New York City Uber drivers protested outside the company's Manhattan headquarters on Tuesday, demanding that the company create a "fuel surcharge" to compensate for rising gas prices.

Inflation, the ongoing war in Ukraine, and supply constraints have collided with rising demand for gasoline as the world returns to the pre-pandemic normal, sending prices at the pump skyward. The national average price for a gallon of gas was $4.24 on Tuesday, which is 50% more expensive compared to last year and 17% higher than last month, according to the American Automobile Association.

Drivers in the rideshare industry say they are getting priced out of profits between paying for gas and sharing what they make with the company.

“Before I used to fill up my tank for $50. Now it’s $70,” protester Wasim Miya told the New York Post. “It’s very hard for drivers. It’s not even worth it to work more because you are using more gas.”

Earlier in March, both Uber and its competitor Lyft announced they would add a surcharge in response to rising gas prices. Uber tacked on a $0.45 to $0.55 fee per trip and Uber Eats deliveries added a $0.35 to $0.45 surcharge. These fees are temporary and will last for at least two months, the company said.

But drivers say this is not enough.

A survey conducted by "The Rideshare Guy," a blog and podcast for rideshare drivers, found that 43% of Uber and Lyft drivers say they're driving less or have quit their jobs because gas is too expensive, despite the surcharge.

“Many drivers say that the fuel surcharges are not enough and they would have preferred to see a per-mile surcharge to account for the increased fuel expenditure on long trips instead of a flat fee,” said Harry Campbell, founder and CEO of "The Rideshare Guy."

With no hope of relief from the city government, drivers want rideshare companies to take a smaller commission from rides and charge passengers a higher surcharge to help cover the cost of gas.

“In a usual day when you book $200, you take $100, today you[‘re] taking $50 or $60 because all the money is going into buying gas,” said another driver, Jahon Gir.

Gir and other fed-up Uber drivers formed a caravan with their vehicles, driving across the Brooklyn Bridge to the company's headquarters on the West Side of Manhattan, then going to the World Trade Center. They carried signs saying things like "Need Money 4 Gas" and "Gas Prices Are Killing Our Income!"

“I have a wife and six kids. Inflation is so high. I’m feeling the squeeze,” said Pedro Acosta. "Our money is going nowhere because of the gas prices. We need some increase.”

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Lyft driver with concealed carry license opens fire on armed carjackers, sending them to the hospital



A Lyft driver in Philadelphia who is licensed to carry a firearm thwarted an armed carjacking Monday afternoon by shooting and injuring two suspects as they attempted to steal his vehicle.

The rideshare driver, a 38-year-old man, was transporting a female passenger on the 4200 block of Parkside Avenue in West Philadelphia when he was rear-ended twice by a Honda Accord, WTXF-TV reported.

After being hit for the second time, the driver got out of his 2011 Infiniti sedan to confront the two men, who, according to police, were in their twenties. That's when one of the men allegedly exited his vehicle and pointed a gun at the Lyft driver, demanding possession of his vehicle.

The driver was able to remove his passenger from the vehicle before the carjacker entered the driver's seat. But once the suspect was in control of the vehicle, the Lyft driver — reportedly a licensed concealed firearm carrier — pointed his gun at the man and opened fire, striking him in the chest.

According to Fox News, the driver of the getaway vehicle then tried to run him over, but the Lyft driver was able to shoot him in the right side of his ribcage. Both suspects reportedly drove away from the scene in opposite directions but made it only a few blocks.

Philadelphia police apprehended the two suspects shortly after the incident and rushed both to Penn Presbyterian Medical Center. At least one of the suspects has been listed as in critical condition. The Lyft driver was not injured during the incident.

WTXF reported that bystanders witnessed the entire incident as it took place since it occurred at a relatively busy intersection and in broad daylight. The outlet noted that the setting of the incident shows just how brazen the suspects were in attempting the carjacking.

Witnesses also reportedly said they saw the suspect who drove off in the Lyft driver's vehicle fall out of the car as it came to a stop just three blocks away from the scene of the crime.

Police reportedly recovered all of the weapons from the scene. The identities of those involved have yet to be released.

Philadelphia has been hit with a slew of violent crimes over the past year, including a record-breaking 562 homicides. Additionally, 14 people have already been shot in the city since the start of the new year.

Lyft driver shoots two suspects attempting to carjack vehicle in Philadelphia, police say www.youtube.com

California-based Salesforce pledges to help employees relocate out of Texas over abortion law; Gov. Newsom responds



Salesforce, the San Francisco-based software company, is offering to relocate employees out of Texas over the Lone Star State's controversial abortion law.

The Supreme Court recently declined to block the law, which bans abortions of unborn babies with a fetal heartbeat.

What did Salesforce do?

In a company-wide message sent last Friday, Salesforce told its employees the company would assist any employee who wants to relocate from Texas because of the law.

The message, which was obtained by CNBC, said:

These are incredibly personal issues that directly impact many of us — especially women. We recognize and respect that we all have deeply held and different perspectives. As a company, we stand with all of our women at Salesforce and everywhere.

With that being said, if you have concerns about access to reproductive healthcare in your state, Salesforce will help relocate you and members of your immediate family.

After news of Salesforce's offer broke, company CEO Marc Benioff tweeted, "Ohana if you want to move we'll help you exit TX. Your choice." Ohana, a word Benioff frequently uses, is a Hawaiian term that means "family."

California Gov. Gavin Newsom (D) responded to Benioff, "Welcome to California."

Benioff and Salesforce have made it clear before where they stand politically. In 2015, the company essentially launched a boycott of the state of Indiana over then-Gov. Mike Pence signing into law the Religious Freedom Restoration Act, which critics said would lead to LGBT discrimination.

"Today we are canceling all programs that require our customers/employees to travel to Indiana to face discrimination," Benioff said in March 2015.

Anything else?

Other San Francisco-based companies, like Uber and Lyft, have said they will pay the legal fees of any Texas drivers who incur fines related to the law. Under the law, ride-sharing drivers could face fines of up to $10,000 if they drive a woman to an abortion clinic.

"This law is incompatible with people's basic rights to privacy, our community guidelines, the spirit of rideshare, and our values as a company," the founders of Lyft and the company's general counsel said.

Lyft also took the additional step of donating $1 million to Planned Parenthood.

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