Uber and Lyft drivers supporting a Minneapolis ordinance that would increase their pay say they are prepared to ditch the apps should the rideshare companies decide to leave the city.
In a press conference Tuesday, Eid Ali, president of the Minnesota Uber/Lyft Drivers Association (MULDA), said his group has been talking to two other “transportation network companies,” or rideshare companies, about entering the Twin Cities market in the event that Uber and Lyft leave.
“Over 1,000 drivers who are ready,” Eid said. “The same day that they [Uber and Lyft] pull out, we have people who will cover that so we don’t have any problem.”
Eid also said the other companies, which he declined to name, would be willing to make drivers stakeholders in the business.
Uber and Lyft threatened on August 15 to pull or limit their services in Minneapolis if the City Council approved a then-pending ordinance to increase pay and workplace protections for their drivers.
In an email to app users, Uber said it could be forced out of Minneapolis and asked users to email the mayor and council asking them to oppose the ordinance. Lyft said it would cease operation on January 1, 2024.
“If the bill were to pass, we would unfortunately have no choice but to greatly reduce service, and possibly shut down operations entirely,” said Uber’s email.
The council eventually passed that ordinance on August 17. *Afterwards, Uber said it would only offer premium services in Minneapolis once the ordinance went into effect, but the ordinance was vetoed by Mayor Jacob Frey before further action from the rideshare apps.
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Tuesday’s press conference also included Council Members Robin Wonsley and Jason Chavez, who are advocating for a new ordinance that would increase pay for rideshare drivers. Council Member Jamal Osman is also part of the effort.
Wonsley has led the efforts to pass a policy that would increase driver wages in the city after a bill in the state Legislature was vetoed by Governor Tim Walz in May, and after Frey vetoed the City Council’s first rideshare ordinance in August.
After Tuesday’s press conference, the Business, Inspections, Housing & Zoning Committee met and approved a motion to conduct a comparative analysis of the three pay proposals for drivers.
This analysis will be presented to the City Council at a January 19 meeting.
Wonsley, Chavez, and Osman introduced the following three payment options for analysis:
- Model A (Original proposal): A minimum compensation rate of $1.40 per mile and $0.51 per minute for the time transporting a customer.
- Model B (Mayor Frey’s proposal): A minimum compensation rate of $1.17 per mile and $0.34 per minute for the time transporting a customer.
- Model C (Alternative proposal): A flat rate of $24 per hour, applied only during the time it takes to pick up a customer or during the time transporting a customer.
Wonsley and Chavez said the goal is to get drivers a wage of $15 per hour.
“There is no reason why any worker in our city or any business, small- or a large-scale corporation, should be paying anything less to their workers who make our city thrive and help it function day to day,” Wonsley said.
Minneapolis has a $15.19 per hour minimum wage for businesses with more than 100 employees. Uber and Lyft drivers are considered contract workers, and therefore don’t have a minimum wage.
The City Council’s initial rideshare ordinance passed in August would have guaranteed drivers a minimum compensation of $0.51 per minute and $1.40 per mile while they were transporting customers within city boundaries. The compensation would have increased annually proportional to the city’s minimum wage.
Frey vetoed that ordinance, saying he supported improved wages and workplace conditions for rideshare drivers, but wanted to analyze more data before making a decision.
Wonsley, Chavez, and Osman came back in September with two new proposed rideshare ordinances. Wonsley’s office told Sahan Journal at the time that the new ordinances could be up for a vote in October before the full council, but the two proposed ordinances are now expected to come up early next year.
While advocates are focusing on compensation for drivers, Wonsley said drivers’ rights and protections are still being discussed, and that she hopes to see an ordinance passed in early 2024.
*UPDATE: The article has been updated to show that Uber first threatened to pull its services out of Minneapolis because of a proposed ordinance, and then later said it would only offer premium services after a rideshare ordinance was passed in August.
