State lawmakers are considering a proposal that would add Maine to a growing list of states and cities that set minimum rates for rideshare drivers.
The proposed measure 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 rideshare 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 rideshare drivers.