A controversial new ordinance has rideshare providers Uber and Lyft threatening to pull services from Minneapolis.
Here’s Five Fast Facts on Rideshare Services in Minneapolis:
- 🚗 Riding Out - The Minneapolis City Council voted to pass an ordinance that requires Uber and Lyft to pay drivers 80% of canceled rides and no less than $5 a ride. Supporters say it will close a loophole in the city’s minimum wage law. Uber and Lyft have threatened to leave Minneapolis on May 1 if the law passes.
- 🛑 Full Stop - Mayor Frey and Governor Walz have both vetoed city and statewide ordinances last year and Frey said he’ll veto this one, too. Frey encouraged the City Council and the rideshare providers to work together to come to a compromise.
- 🚘 Counter Offer - Uber said it would rather see statewide legislation guaranteeing drivers $35 an hour minimum earnings and has urged drivers and riders to sign a petition opposing the ordinance.
- 🛻 Jumping the Gun - The state department of Labor and Industry is due to release a report that analyzes 19 million trips registered on the two apps in 2022. It’s expected to make recommendations on minimum pay rates without making rides too expensive.
- 🚚 Precedent - It should be noted that New York, Washington State, and California have laws requiring minimum pay for rideshare drivers. Uber and Lyft still operate in those states.
🔥Bottom line: Has anyone asked the drivers what they want in this situation? Either way it sounds like whoever wins, the regular folks lose out. If the drivers get more pay, we might lose Uber and Lyft. If Uber and Lyft win, the drivers lose out on their pay. Hopefully everyone can compromise.
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