MINNEAPOLIS — Editor's Note: This video aired April 8, 2024.
Minneapolis City Council members announced their intent Wednesday to delay the start date of the new ordinance that would require a higher minimum wage for rideshare drivers.
The news came as Ward 11's Emily Koski joined Ward 8's Andrea Jenkins in calls to amend the ordinance, pushing to adjust the per-mile rate to $1.21, but maintain the proposed per-minute rate of $0.51. The adjustment reflects the numbers first recommended by the state's Department of Labor and Industry.
A statement on behalf of the council members said by pushing the effective date back, city leaders, stakeholders and rideshare companies will have "time to adapt."
"Leadership in decision-making entails gathering information, consulting stakeholders, and making informed choices, while also embracing uncertainty and adapting to new information," the statement said, in part. "Our goals have and continue to be to ensure fair wages for drivers, stability for drivers and riders, and a healthy, competitive market. With this amendment, we can accomplish those goals."
The ordinance sparked responses from Lyft and Uber that both intended to leave the city as soon as the new pay rates were implemented on May 1.
If the city council passes an extension, the ordinance would not go into effect until July 1, giving new rideshare apps more time to develop before Lyft and Uber leave. Council President Elliott Payne and Council Members Katie Cashman and Aurin Chowdhury announced they would bring the proposal to a vote on Thursday.
"These changes will allow for any companies that want to work in the city and pay the fair wage time to set up in the event Uber and Lyft choose to leave Minneapolis instead of paying workers a living wage," the councilmembers said in a joint statement Wednesday.
"We know that three new rideshare companies to date have submitted applications for Transportation Network Company licenses, and we want to ensure there is limited disruption in allowing these companies and others time to be up and running."
As the ordinance currently stands, rideshare drivers would be required to pay rates of $1.40 per mile and $0.51 per minute. Mayor Jacob Frey has been a vocal opponent of this ordinance, but the council voted to pass the ordinance over top of his veto.
Several apps and taxi companies have announced interest in stepping up to fill the void that Lyft and Uber intend to leave in the city. However, experts say it will take multiple companies to replace the vast level of drivers and operations that Lyft and Uber currently run.
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