MINNEAPOLIS — Drivers for Uber, Lyft and other rideshare companies would get a minimum wage in Minneapolis if a city ordinance passes as early as next month, city council members said Tuesday at a news conference.
Under the ordinance, 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.
Uber and Lyft “cannot continue to collect billions of dollars off the backs of drivers, like the ones here today, while those very drivers struggle to cover their rent, childcare costs, health care bills, and so many other basic necessities," said Democratic council member Robin Wonsley, lead author of the proposed ordinance.
Farxan Bedel said he has been driving for Uber and Lyft since 2018 to support his family.
“We just want fair compensation,” Bedel said. “If you pay $50 from downtown Minneapolis to the airport, why am I getting $15? That’s unfair."
If passed, the ordinance would also guarantee riders and drivers get receipts detailing how much the rider was charged versus what the driver received.
“The pay for drivers has dropped to less than half of what it was in 2014. That’s what caused 1,300 drivers to organize,” said Stephen Cooper, an attorney for the Minnesota Uber/Lyft Drivers Association and a former human rights commissioner for Minnesota.
Seattle, New York City and Washington state have passed similar policies to protect rideshare drivers, and rideshare companies haven't left those places, Cooper said.
In May, Minnesota’s Democratic Gov. Tim Walz vetoed a bill that would have mandated higher pay and job security for Lyft and Uber drivers in the state. Walz said at the time that rideshare drivers deserve fair wages and safe working conditions, but it wasn’t the right bill to achieve those goals.
Ride-hailing drivers, like other gig economy workers, are typically treated as independent contractors not entitled to minimum wages and other benefits, and have to cover their own gas and car payments.
Lyft sent KARE 11 the following statement in response to the Minneapolis proposal:
“This proposal doubles down on the flawed bill vetoed by Gov. Walz earlier this year, which would have made rideshare in Minneapolis more expensive than in New York City. Drivers would have earned less, since only the most wealthy could have afforded a ride. Lyft is actually part of the state's task force on this very issue and is currently working with drivers and other stakeholders, including the city of Minneapolis, to make recommendations grounded in actual data on how best to support rideshare drivers. Instead of ramming through bad policy on the backs of riders, we should wait for the task force to complete its work."
-Lyft
Uber also responded to inquiry with this statement:
"Our goal remains unchanged: we want to work with drivers and local legislators on a compromise that raises rates for drivers without hurting riders. That's why we're proud to serve on the Governor's Task Force and look forward to coming up with a framework for statewide legislation -- which is how this issue should be handled, rather than a patchwork of different rules and regulations statewide."
-Freddi Goldstein, Uber spokesperson
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