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Lyft says service could end in Minneapolis on Jan. 1 if city council passes rideshare ordinance

In a letter to City Council President Andrea Jenkins, Lyft said it would "cease operations" in Minneapolis as early as Jan. 1, 2024, should the proposal pass.

MINNEAPOLIS — Editor's note: The video above first aired on KARE 11 on July 25, 2023.

Rideshare company Lyft says service could end in Minneapolis as early as next year if the city passes a proposed ordinance that would mandate minimum wage for drivers and enact other protections.

In a letter to Minneapolis City Council President Andrea Jenkins Tuesday, the San Franciso-based company said if the proposal becomes law in the city, Lyft would "be forced to cease operations" in Minneapolis on Jan. 1, 2024.

Last week, the Minneapolis City Council's Business, Inspections, Housing & Zoning Committee unanimously passed the ordinance. A full vote on the matter could come as early as Thursday, Aug. 17, when the city council meets next.

Under the ordinance, rideshare drivers would get at least $1.40 per mile and $0.51 per minute, or $5, whichever is greater. The rule would only apply to the portion of the ride within the city.

If passed, the ordinance would also guarantee riders and drivers get receipts within 24 hours of a completed trip detailing how much the rider was charged versus what the driver received.

"Lyft requests that the City Council wait for the policy recommendations of the state’s Committee on the Compensation, Wellbeing, and Fair Treatment of Transportation Network Company Drivers, a task force representing drivers, companies, nonprofits, labor, and even the City of Minneapolis itself," Lyft Chief Policy Officer Jeremy Bird said in the letter to President Jenkins. "This is not because we believe the City Council should cede its own authority or responsibilities to the state, but because the state task force is engaging with a broad and inclusive stakeholder group (which the city is part of) and doing so on a much more sensible timeline."

Earlier this year, Minnesota Governor Tim Walz vetoed a bill passed by the DFL-controlled Minnesota legislature that would've set minimum pay and offered protections to rideshare drivers. At the time, both Lyft and fellow rideshare service Uber had actively urged Walz to veto the bill, claiming the high costs could instead force them to change their services and put drivers out of work.

With the veto, Walz issued an executive order to create a working group that will study driver pay and protections, with the goal of recommending alternative statewide rideshare legislation next year.

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