MINNEAPOLIS, MN (trfnews.i234.me) – In a crucial meeting on Thursday, the Minneapolis City Council addressed the impending rideshare ordinance, which had Uber and Lyft on the brink of leaving the city by May. The council unanimously agreed to postpone the ordinance’s enforcement, pushing back the effective date from May 1 to July 1. This decision aims to provide additional time for new ride-hailing apps to enter the market and for collaboration with state legislatures to explore alternative solutions.
The ordinance, initially passed despite Mayor Jacob Frey’s veto in March, mandates a minimum wage increase for ride-hailing drivers to $1.40 per mile and 51 cents per minute. However, Uber and Lyft threatened to cease operations in Minneapolis once the new wage structure took effect.
While a state report highlighted underpayment issues among Uber and Lyft drivers, recommending rates of 89 cents per mile and 49 cents per minute, council member Linea Palmisano’s motion to revoke the rideshare ordinance entirely was rejected in a 10-3 vote.
The revised implementation date will be forwarded to Mayor Frey for further consideration.
In response, Lyft expressed appreciation for the council’s acknowledgment of the ordinance’s flaws. Despite extending services until July 1, Lyft emphasized concerns about increased ride costs and potential operational shutdowns. As a compromise, Lyft proposed supporting the Minnesota Department of Labor and Industry’s recommended rates, aiming to maintain operational viability while enhancing driver earnings.