Minnesota’s New Rideshare Law is Now Official – Here’s What You Need to Know

A controversial law in Minnesota that could impact the cost of your rideshare trips is officially in effect.

After months of back-and-forth with Uber and Lyft threatening to suspend operations in Minneapolis as of May 1, 2025, a compromise between state legislators and rideshare companies was reached.

The dispute began in March, following the Minneapolis City Council’s decision to approve an ordinance ensuring higher pay for drivers—$1.40 per mile and $0.51 per minute. While the agreement fell short of the initial figures, as of Sunday, rideshare drivers are now earning $1.28 per mile, $0.31 per minute, and a guaranteed minimum of $5 per trip. Additional benefits and protections for drivers are also included.

“It is a great thing, a way that I can calculate how much I’m getting paid while I’m on the road,” said Mardice Washington.

Washington, who has been an Uber driver for nearly a decade, believes this pay bump is essential, particularly in the current economic climate where inflation continues to take a toll.

“We are responsible for the car, gas, and we have to eat. Everyone knows food has increased tremendously. We needed an increase to be able to stay on the road,” Washington explained.

While an Uber representative acknowledged that prices for rides will go up, they assured customers that the company is striving to keep the increases as minimal as possible.

Washington also recognizes that the new pricing could lead to reduced ride demand, but remains optimistic that riders will continue to support drivers like herself.

Attempts to obtain specific information from Uber and Lyft regarding the exact percentage of price increases customers should anticipate have yet to be answered.

Source: CBS News