Lyft and Uber have changed course on their decision to leave Minneapolis on May 1 following a delay in implementing a new minimum wage for rideshare drivers.
Originally, the city council had set a minimum wage of $15.57 per hour for drivers, prompting the ride-hailing companies to announce their exit from the city.
However, at a recent meeting, the Minneapolis City Council unanimously passed a measure to extend the implementation deadline to July 1.
This extension allows time for further discussions on the minimum wage law and provides an opportunity for new ride-hailing services to enter the market.
Uber expressed support for this decision, stating that it creates an opportunity to collaborate on a statewide solution that addresses driver pay, flexibility, and affordability of rides. Lyft also welcomed the council’s action, acknowledging flaws in the original ordinance.
Mayor Jacob Frey, while supporting a minimum wage for rideshare drivers, opposed the ordinance due to concerns over discrepancies with a state study on appropriate pay rates for drivers.
The ordinance originally required rideshare drivers to earn at least $1.40 per mile and $0.51 per minute within Minneapolis, but Mayor Frey cited a state analysis suggesting lower rates.
Now, some council members are proposing amendments to the ordinance, suggesting a lower per-mile rate of $1.21 while maintaining the proposed per-minute rate of $0.51.
In a joint statement, Council President Elliott Payne and Council Members Katie Cashman and Aurin Chowdhury emphasized the importance of gathering information and making informed decisions to ensure fair wages for drivers, stability for both drivers and riders, and a healthy, competitive market.
This amendment aims to achieve these goals effectively.
