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Minneapolis council plans to implement rideshare ordinance despite mayor, council member pushback

City council leaders affirmed they are working with new rideshare companies to move into Minneapolis.

MINNEAPOLIS — Minneapolis city council members reaffirmed their support of the new rideshare bill Thursday that has drawn critique from lawmakers, the mayor, and now, their colleagues

The ordinance, authored by council members Robin Wonsley, Jamal Osman and Jason Chavez, is intended to raise rideshare driver pay to meet the city's $15.57 per hour minimum wage. Following the passage March 14, Lyft and Uber immediately released statements saying they would leave Minneapolis once the pay requirement goes into effect on May 1. 

In a joint statement Thursday, six of the total 13 council members supported their vote in the face of rising criticism. 

“Pressure from large corporations like Uber and Lyft can be daunting, and we’ve seen the fear tactics they have used in other cities and states in response to regulation," the ordinance authors wrote. "We remain steadfast in our belief that Minneapolis can be a city that provides safe and affordable services for riders and ensures minimum wage equivalents for drivers."

On Thursday, Council Member Andrea Jenkins introduced a notice that would allow the council to reconsider, amend or even fully stop the rideshare ordinance at their next meeting on April 11. This comes after a statewide wage report was released just one day after the council voted to approve this ordinance.

"This notice is a procedural notice to give us an opportunity to amend our ordinance if we so choose," Jenkins said.

Other members on the council say they're concerned that data won't be fully available by the time April 11 comes around. Council member Jason Chavez asked Jenkins to remove that notice, as they continued to gather information.

"Continue to work with legislators to ensure that Minneapolis policy is driven by all available data, including specific local information, as well as supporting state legislative efforts to bring forward a statewide policy," he said.

At a state level, Republican lawmakers have expressed concerns about Lyft and Uber leaving and, to entice them to stay, introduced a bill that would block local rideshare ordinances. 

KARE 11 previously reported that Lyft and Uber leaving the city would be particularly concerning for residents with disabilities who rely on these services to get around. 

The council members responded to that concern in the statement, saying they are working with MetroMobility to increase their existing service, which provides people with disabilities taxi rides for $5. 

Additionally, the statement said council leaders are working to remove barriers for several new rideshare companies to move business to Minneapolis. 

Council President Elliott Payne, Vice President Aisha Chughtai and Ward 12's Aurin Chowdhury lent support to the statement. Notably, former council president Andrea Jenkins released an opposing statement Wednesday that said she would reconsider her vote in favor of the ordinance. 

In its latest statement Thursday morning, Lyft said it's "encouraged" about the possibility the ordinance could be reconsidered. 

"Rideshare has been a major benefit to both riders and drivers in Minneapolis, with the median Twin Cities driver on Lyft earning more than $25 per engaged hour after expenses. And we're committed to improving driver pay further, which is why we support a minimum earnings standard and why just last month we announced a new earnings commitment where drivers will always make at least 70% of the weekly rider fares after external fees.

"Despite the fact that the Council has repeatedly rejected offers to collaborate on this important issue, we are encouraged that they are now open to reconsidering their extremely damaging ordinance. The legislation they passed will make the service unaffordable for most riders, and drivers would have ultimately earned much less as a result. While we continue to have serious concerns with the state's study, even it found a rate of $.89 per mile and $.49 per minute would achieve Minneapolis’ minimum wage of $15.57, after expenses. While not an ideal solution, these rates would allow us to continue to operate within the city and maintain an affordable service for riders."

The Minneapolis City Council voted 10-3 to override Mayor Jacob Frey's veto of the proposal, which is one more vote than needed. As of Thursday morning, no other council members have announced reconsideration. 

Eid Ali, president of the Minnesota Uber/Lyft Driver's Association, released a statement in response to the notice Thursday morning. 

"Since day 1, the City Council has made strong, data-backed policy to ensure drivers are included in the city’s $15.57 minimum wage. After supporting drivers with many prior votes, it’s disappointing that councilmember Jenkins appears to be now looking at repealing or changing the ordinance because of threats by Uber and Lyft – the same companies that have exploited drivers for years to protect their profits. Luckily, today the council made it clear they are not interested in caving to corporate bullying on April 11th," he said.

   

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