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I continue to hear that Uber and Lyft leaving Minneapolis is a bluff. To be bluffing, Uber and Lyft have to be seeing a significant downside in leaving Minneapolis. I don’t believe that’s the situation. It would make sense for them to act on their intention. (Opinion editor’s note: Uber has said it is leaving the entire metro, and Lyft says it’s pulling out of Minneapolis.)
Uber is in 10,500 cities. In the United States, Uber is in every metropolitan area. Minneapolis is the 46th largest city in the U.S. With the largest cities (New York, Los Angeles, San Antonio, Houston, etc.) dwarfing those outside of the Top 10 cities, I would be very surprised if Uber’s income and revenue from Minneapolis is even 1% of its total revenue. Probably much less than 1%. If you are Uber’s executives, it would be a no-brainer to sacrifice an extremely small revenue source to keep its numerous other locations from following suit and enacting minimum-wage ordinances. It is strictly a shrewd business strategy to keep its product profitable worldwide.
The situation points to a certainty that Uber and Lyft are going to pull out of Minneapolis unless this ordinance is overturned, and what the City Council is going to hear from numerous restaurants, hotels and other entities dependent upon conventions and local patrons is “I told you so” as they permanently shut their doors.
David Bialke, Brooklyn Park
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As a Lyft rider in danger of losing my ride service, I read with interest Joshua Sear’s “advertisement” for his company, Empower, in the April 2 edition of the Star Tribune (”Local riders will find alternatives,” Opinion Exchange). I immediately went online to learn more and found that Empower provides software to drivers that enables them to connect with potential riders. That is all. It provides nothing for the riders. The biggest issue is that riders are not insured as they are with Lyft and Uber. Empower may not provide a resolution if there is a problem such as being charged for a no show or encountering a rude or dangerous driver.