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.
Watch more local news:
Watch the latest local news from the Twin Cities and across Minnesota in our YouTube playlist:
WATCH MORE ON KARE 11+
Download the free KARE 11+ app for Roku, Fire TV, Apple TV and other smart TV platforms to watch more from KARE 11 anytime! The KARE 11+ app includes live streams of all of KARE 11's newscasts. You'll also find on-demand replays of newscasts; the latest from KARE 11 Investigates, Breaking the News and the Land of 10,000 Stories; exclusive programs like Verify and HeartThreads; and Minnesota sports talk from our partners at Locked On Minnesota.
- Add KARE 11+ on Roku here or by searching for KARE 11 in the Roku Channel Store.
- Add KARE 11+ on Fire TV here or by searching for KARE 11 in the Amazon App Store.
- Learn more about the KARE 11+ app for Apple TV in the Apple App Store.
- Learn more about KARE 11+ here.