MINNEAPOLIS — The Minneapolis City Council voted to delay the start of its newly approved rideshare ordinance Thursday, securing Uber and Lyft services in the city until July 1.
The move comes after months of back and forth with Mayor Jacob Frey and rideshare companies that threatened to leave Minneapolis by May 1, the ordinance's original effective date. The rule, as it stands now, requires rideshare companies to pay rates of $1.40 per mile and $0.51 per minute.
But following Thursday's vote, the effective date of the ordinance will be extended until July 1 while the body considers a state-recommended adjustment of $1.21 per mile while maintaining the proposed per-minute rate of $0.51.
“A delay is not a fix," said a statement from Frey, who has vehemently opposed the ordinance in its current form. "While Council continues to make a mess of this, I’ll be working with policymakers and partners from across the disability, hospitality, and business communities to find a path forward for drivers and riders.”
Council Member LaTrisha Vetaw, also critical of the rideshare ordinance put in place by her colleagues, thanked the council during the meeting for agreeing to reconsider it, echoing Frey's concern for the people in Minneapolis who count on companies like Uber and Lyft for transportation.
"I am gonna be supporting this also, but I'm not gonna be supporting this because I think it's a solution," Vetaw said. "I'm going to be supporting it because my constituents have been living in fear and anxiety over the uncertainty of whether they'll be able to have a job, or have housing, get to their jobs or get children to school. In this work, we all need to be willing to admit when we get things wrong and I just think this is a bad policy, and we need to go back and fix it."
"I hope my colleagues will have to the courage to fix it by July 1," Vetaw added.
Over the last few months, a number of community leaders who joined in the rally against the ordinance also said their opposition is about more than just Uber and Lyft's bottom line.
"We're all taking calls from trip planners asking, 'What should we do?' Worse yet, we're hearing from future perspective conventions, corporate site selectors and others who are taking Minneapolis off their list of places to visit and places to locate. It's not a great look for our city," Minneapolis Regional Chamber of Commerce President and CEO Jonathan Weinhagen told KARE.
On Wednesday, Ward 11's Emily Koski joined Ward 8's Andrea Jenkins in calls to amend the ordinance at their meeting Thursday morning, saying in a statement that by pushing the effective date back, city leaders, stakeholders and rideshare companies could have more time to "adapt."
The next morning, Council President Elliott Payne and Council Members Katie Cashman and Aurin Chowdhury brought the proposal to a vote, where Council Member Jamal Osman, one of the ordinance's authors, spoke directly to drivers caught in the crosshairs.
"I want to talk to the drivers. This extension we're doing is reasonable in that we are trying to work with the state, trying to get to a solution," Osman said. "We are committed to you, we will continue to [be] committed to you to get a fair wage like everyone else — like everyone else sitting here in Minneapolis — they get that protection and you deserve that protection."
As the city continues its search for a solution, several apps and taxi companies have already announced interest in stepping up to fill the void that Lyft and Uber intend to leave. However, experts say it will take multiple companies to replace the vast level of drivers and operations that Lyft and Uber currently run.
Following the council's decision to reconsider the parameters of the ordinance, both rideshare companies announced they'd stick around until at least July 1.
Lyft statement:
"We are encouraged the Council is recognizing the flaws in their incredibly damaging ordinance. Given their actions today, we too will extend our services through to the new effective date of July 1.
"However, the fundamental facts remain the same: this ordinance will make rides too expensive for most riders, meaning drivers will ultimately earn less. This is unsustainable for our customers and would force us to shut down operations in Minneapolis when the ordinance does inevitably take effect. That's why, as a compromise, Lyft is willing to support the Minnesota Department of Labor and Industry study’s recommended $.89 per mile and $.487 per minute rates, which would increase current driver earnings by 17% while allowing us to continue to operate within the city. This is the way we can balance the needs of riders, drivers and our community as a whole."
Uber statement:
"Earlier today, the Minneapolis City Council voted to delay their new rideshare law until July 1. This means that Uber will continue to operate in Minneapolis and surrounding areas through July 1.
"Your voice played a crucial role in this decision — your calls and emails to City Council members over the past few weeks let them know, loud and clear, that Minneapolis needs rideshare. Thank you for making your voice heard!
"But there is still work to do — while this delay is a positive development, in the coming weeks we will continue to work with state leaders on a permanent statewide solution that raises driver pay, protects driver flexibility, and keeps rideshare affordable."
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