Uber and Lyft have issued ultimatums to the city of Minneapolis, threatening to cease operations if Mayor Jacob Frey does not veto a new rule that would establish a minimum wage for rideshare drivers. The ordinance, which passed with a 7-5 vote by the Minneapolis City Council, would require drivers to be paid at least $1.40 per mile and $0.51 per minute, but only for the portion of the ride within the city limits. The rule is set to take effect on January 1, 2024. Both ridesharing companies are banking on the mayor vetoing the new regulation and have until August 23 to convince him. If the mayor does not intervene, Uber and Lyft have stated that they will take their business elsewhere.
In a letter obtained by The Post, Lyft warned the council that it would be forced to cease operations in Minneapolis if the proposed rule becomes law. The company cited the significant increase in operating expenses and expressed concern that the regulation would double prices, making rides unaffordable for many customers and decreasing demand for its services. According to Lyft spokesperson CJ Macklin, the bill would financially burden drivers and ultimately result in lower earnings due to reduced ride demand. Macklin criticized the swift passage of the bill, arguing that more time should be given for research and consideration of its consequences. Uber also expressed disappointment with the vote and warned its drivers of the potential impact in an email. The company stated that it may have to reduce service or shut down operations entirely if the bill passes.
Public comments included in the ordinance’s supporting documents revealed that rideshare customers in Minneapolis are also displeased with the proposed mandate. Concerns were raised about the potential increase in ride prices, which could deter ridership and put drivers out of work. The Minneapolis Regional Chamber, an organization advocating for the city’s economy, wrote a letter expressing deep concerns about the ordinance. It emphasized the risk of pricing out individuals who heavily rely on rideshare services, particularly those in the hospitality industry or requiring transportation outside of public transit operating hours. The letter also highlighted the importance of rideshare services for programs like Metro Transit’s Guaranteed Ride Home, which offers transportation during emergencies when other options are unavailable.
Mayor Frey has shared reservations about the ordinance and hinted at the possibility of vetoing it. He expressed concerns about its impact on worker protections, public safety, disability rights, and transportation goals. Frey noted the need for further review of the ordinance and its amendments before making a decision. His spokesperson affirmed his support for drivers receiving higher pay but stressed the importance of addressing concerns with the way the regulation was written and its potential consequences.
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