Uber and other ride-sharing apps are under scrutiny in the Twin Cities.
The Minnesota Rideshare Association has approached city and state leaders asking for more protection for rideshare drivers, especially in the percentage of each fare the driver keeps.
Members of the association are asking for more transparency in how they are paid. Right now, a driver does not know how much the rider is being charged for the trip. Drivers claim the rideshare company keeps well over 50% of the fare charged to the rider.
Jake Clark drives for Uber in the St. Cloud area. He says while the pay can be marginal, the bonuses make up the difference.
If I’m doing a pickup at one of the downtown bars, bringing them back on the campus or in that area, I probably get around $5.00, maybe $7.00. But the reason that I’ll go out and drive during some of those later times, it’s because of the bonus. So if they have a bonus going on, if I do three rides in a row, there’s an $18 bonus that makes up for those short little trips.
In a sit-down interview with WJON news, Clark explained what a night driving for a rideshare service is like in St. Cloud. He decided to start driving to make a little extra money for his family.
WHAT DOES A RIDE COST?
The demand for rideshares is not constant in St. Cloud, it spikes and levels out depending on the time, and in Clark’s opinion, the time of year.
WHAT IS THE DEMAND FOR RIDESHARE IN ST. CLOUD?
Rideshare drivers in the Twin Cities claim companies like Uber and Lyft keep over 50% of the fare collected from the rider. The companies claim their formula is not public, but are quick to mention that a driver keeps 100% of their tips. Clark agrees that, in larger markets, the drivers are right to question that cut.
The Minneapolis City Council plans to introduce a policy to set a minimum wage for rideshare drivers. Statewide, lawmakers are expected to introduce legislation that would give workers greater protections, and create stricter rules on what is considered an independent contractor.