State lawmakers are considering a proposal that would add Maine to a growing list of states and cities that set minimum rates for ride-share drivers.
The proposal would mandate that drivers working for transportation network companies, such as Uber and Lyft, receive a minimum rate per trip based on minutes or miles driven.
The bill’s sponsor, Democratic state Rep. Eleanor Sato of Gorham, said the goal is to start a conversation about fair compensation for Uber and Lyft drivers in a rural place like Maine.
“[Transportation network company] drivers are gig workers, who do not answer to a person, but to an app — an app that is run by a multi-billion-dollar tech company out of Silicon Valley,” she said during a public hearing last week.
Sato said the bill is modeled after a law passed four years ago in Washington state. But local lobbyists representing ride-share companies told state lawmakers they believe that riders ultimately pay the price.
“While this proposal is framed as a benefit to drivers, its rigid, trip-level mandate ignores the complex mechanics of two-sided transportation marketplaces,” said James Cote, an attorney representing Uber. “If enacted, this bill will decrease efficiency, eliminate transparency features like up-front pricing, and ultimately reduce the very earning opportunities that it seeks to protect.”
Besides Washington state, Minnesota, Massachusetts and New York City, among others, set minimum rates for ride-share drivers.
This story appears through a media partnership with Maine Public.