Two new rideshare companies have been given the green light to operate in Minneapolis and are gearing up for a mid-May launch, as state lawmakers announce progress on driver compensation rates.
More than ten rideshare firms showed interest in entering the local market after industry giants Uber and Lyft announced plans to halt operations in response to a Minneapolis ordinance that mandated higher wages for drivers.
The ongoing local debate around driver pay took a new turn with state legislators unveiling a new payment structure, part of a rideshare bill that advanced through a committee and is now headed for further approval.
The proposed legislation proposes a rate of $1.27 per mile and 49 cents per minute for drivers, differing slightly from the Minneapolis ordinance which suggests $1.40 per mile and 51 cents per minute, or $5, whichever is higher, for trips within city limits.
This announcement triggered reactions from Lyft, which expanded its threat to leave Minneapolis statewide, and Uber, which expressed disappointment with the legislative process.
The two rideshare companies poised to replace Uber and Lyft in Minneapolis are MOOV and MyWeels, both approved for city operations. Meanwhile, Wridz and Joiryde have applied but await approval, with Wridz anticipating a positive outcome soon.
Elam Baer, owner of MyWeels, expressed excitement over the approval, highlighting the company’s readiness to launch.
The urgency to secure approval stemmed from a contentious Minneapolis ordinance passed in March to enhance driver wages and benefits starting May 1, prompting Uber and Lyft to threaten service cessation in the city.
MOOV was the first to apply for a license, with owner Murid Amini emphasizing the need to finalize funding to move forward.
To secure a transportation license, companies must submit an application, pay fees exceeding $37,000, and obtain liability insurance, in line with Minnesota state requirements.
MOOV, based in St. Paul, is crowdfunding to meet operational needs, while MyWeels, also based in St. Paul, has already fulfilled necessary financial obligations.
The rideshare landscape in Minneapolis is evolving rapidly, with MyWeels planning test runs soon and MOOV set to launch its app in the coming weeks.
As the legislative process unfolds, it remains uncertain if Governor Tim Walz will support the current rideshare bill, with discussions ongoing at the state level to finalize compensation rates and regulations.
