Lyft, the prominent rideshare company, has corresponded with the Minneapolis city council proposing a compromise on pay rates for its drivers ahead of the city’s impending rideshare pay ordinance.
Despite the council’s recent decision to uphold an ordinance mandating pay rates of $1.40 per mile and 51 cents per minute, Lyft and Uber have declared intentions to cease operations in Minneapolis when the new rules take effect on May 1.
However, some council members are open to reconsidering the prescribed pay rates.
In its communication, Lyft conveyed its willingness to endorse the rates recommended by the Minnesota Department of Labor and Industry study, which suggest $0.89 per mile and $0.487 per minute.
This compromise, according to Lyft, would bolster driver earnings while maintaining affordability for passengers.
Lyft contends that the forthcoming Minneapolis ordinance could have unintended consequences, projecting a potential 51% decrease in ride requests and subsequent income loss for drivers.
Jeremy Bird, Lyft’s Chief Policy Officer, implored the City Council to collaborate in averting adverse outcomes for riders, drivers, and the city itself.
While city officials have yet to publicly respond to Lyft’s proposal, any efforts to alter or rescind the impending ordinance are expected to face strong opposition from advocates of the pay increase.
The authors of the ordinance issued a joint statement expressing concerns about the influence wielded by corporate entities like Uber and Lyft, citing past instances where such companies employed fear tactics in response to regulation in other jurisdictions.
Full Lyft letter:
Dear President Payne,
We are reaching out to work with the City Council in hopes of preventing the tremendous damage to drivers and riders that Lyft’s departure from the city would bring. Lyft is willing to support the Minnesota Department of Labor and Industry study’s recommended $.89 per mile and $.487 per minute rates, which would allow us to continue operating in Minneapolis.
These rates would increase driver pay, a goal which we and the City Council share, and allow rideshare services through Lyft to remain affordable to riders.
