A short city council meeting was held to guarantee rideshare workers a minimum pay rate, at least for now.
That meeting on March 14 resulted in a 10-3 vote to override Mayor Jacob Frey’s veto on an ordinance that guarantees people who drive on the Uber or Lyft platforms a minimum of $1.40 per mile plus 51 cents per minute. Even with the ordinance enshrined, it’s possible legislation introduced at the state legislature this session may supersede it.
Councilmember Emily Koski, who represents deep South Minneapolis, generally south of 43rd Street, east of Lyndale Avenue, and west of 34th Avenue, flipped her vote. She voted on March 7 to not pass the rideshare ordinance, however, she voted to override the veto.
In a statement sent to the media after the vote, Koski says she wanted to wait for a report by the Minnesota Department of Labor and Industry to come out. The report would help her better understand how she should vote.
“That report definitively showed that TNC [transportation network company] drivers have been making subminimum wages,” said Koski. “The City has a minimum wage and labor standards — and we shouldn’t make exceptions to those basic worker rights and protections.”
After the vote, Uber and Lyft both released statements saying that they would leave Minneapolis on May 1, the day the ordinance goes into effect. Uber plans to leave the seven-county Twin Cities metro entirely. “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,” said spokesperson Josh Gold, adding he believes the minimum wage for drivers should be 89 cents per mile and 49 cents per minute.
Both Uber and Lyft plan to work with state legislators to develop legislation that would “keep rideshare affordable.” Several legislators have introduced or plan to introduce legislation for fair compensation of rideshare drivers who also work for the companies. Sen. Omar Fateh, DFL-Minneapolis, introduced legislation to mandate a minimum pay of $1.55 per mile and 54 cents per minute. Koski says she would support amendments to the ordinance to align with state law.
Meanwhile, drivers and councilmembers continue to call Uber and Lyft’s bluff and are confident replacement services will be able to fill the need should Uber and Lyft leave. Councilmembers, including Councilmember Jason Chavez, say several startup companies are looking to obtain licenses to operate in the cities. One of them is the Driver Coop, a worker-owned coop that operates in New York.
Taxis remain an option, but Axios Twin Cities reports Minneapolis has 39 taxi drivers remaining, a far cry from the 1,200 taxis that roamed the streets of Minneapolis over a decade ago.
Meanwhile, Metro Transit’s Northside microtransit pilot, which functions like Uber and Lyft but charges cheaper fares, will be made permanent this fall and expand to serve Roseville and Woodbury.
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