BLOOMINGTON, Minnesota — Minnesota Uber/Lyft Drivers Association (MULDA) is launching a rideshare co-operative to replace the tech giants threatening to leave the state. Uber and Lyft vowed to exit Minnesota following the Minneapolis City Council passing a ordinance that would require a pay increase for drivers.
The Transportation Driver Worker Protections Ordinance was passed following the Minneapolis City Council overriding Mayor Jacob Frey's veto. It calls for rideshare companies to pay drivers $1.40 per mile and 51 cents per minute for all portions of a ride taking place in Minneapolis.
Eid Ali, president of the Minnesota Uber Lyft Driver's Association, says its welcoming all sorts of rideshare services to the state and hoping drivers join their rideshare co-op.
"Drivers could work for themselves because they are part owner of this company," Ali said.
Eric Forman helped launch The Drivers Cooperative in New York City. He's helping MULDA get ready for their launch. In New York, the Co-Op currently has 12,000 drivers that have provided more than 300,000 trips since launching in 2021. Forman claims the drivers make 8-10% more than they through Uber/Lyft. The Co-Op primarily focuses on paratransit in the Big Apple but would shift that focus to rideshare in Minnesota as 15% of the ride profits would go back into the Co-Op.
Forman says he helped sign up 200 drivers by Friday including Marianna Brown.
"Uber and Lyft drivers are being exploited and we are not treated fairly," Marianna Brown, MULDA vice president said.
Uber says it would stop operating across the entire metro area - including service to the airport - when the ordinance takes effect May 1.
“We are disappointed the Council chose to ignore the data and kick Uber out of the Twin Cities, putting 10,000 people out of work and leaving many stranded," the Uber statement read. "But we know that by working together with all stakeholders - drivers, riders and state leaders - we can achieve comprehensive statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps rideshare affordable.”
Lyft also vowed to leave the city at the start of May:
"This ordinance is deeply flawed, and the rates it sets are far higher than what the state's study suggested. We support a minimum earning standard for drivers, but it should be done in an honest way that keeps the service affordable for riders. This ordinance makes our operations unsustainable, and as a result, we are shutting down operations in Minneapolis when the law takes effect on May 1. We will continue to advocate for a statewide solution in Minnesota that balances the needs of riders and drivers and hope to return to Minneapolis as soon as possible."
Councilperson Emily Koski noted in a media release that the Minnesota Legislature is currently working on a bill that would set a minimum wage for TNC drivers statewide, saying the version that recently passed committees in both the House and Senate calls for wages "within pennies" of the ordinance passed in Minneapolis.
"The city has a minimum wage and labor standards - and we shouldn't make exceptions to those basic worker rights and protections, Koski wrote.
Koski said if the bill does pass and becomes law, the city can amend its ordinance to match state rates.
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