Weeks before Uber and Lyft have said they will exit Minneapolis due to a new minimum pay rule, some City Council members said this week that they were open to revising the ordinance.
Meanwhile, local taxi companies and startup apps say they are recruiting drivers, in case the rideshare giants follow through on their threat.
The Minneapolis City Council passed a rideshare ordinance on a vote of 9-4 earlier this month that was soon after vetoed by Mayor Jacob Frey before the council overrode his veto with a 10-3 vote on March 14.
The ordinance sets a pay rate of $1.40 per mile and $0.51 per minute, or $5, whichever is higher, for the time transporting a rider within city limits.
Immediately after the vote’s results, Uber and Lyft, the city’s only operating rideshare apps, said they’d be leaving the city on May 1.
Uber went as far as threatening to pull out of the seven-county metro area.
related sTORIES
Whether the apps just leave Minneapolis or not, the whole metro will be affected, according to some Twin Cities residents who have taken the threats seriously and say they’re worried about transportation.
Dustin Lindberg, a visually-impaired man who lives in Columbia Heights, said he gets around mostly on the bus.
Lindberg said he can take a Metro Transit bus to the Walmart in Fridley that’s miles away and one town over, but can’t take a bus to a park that is a few miles away from his home.
“So when I want to go walk in the park I’ll normally call an Uber,” Lindberg said, “And Uber will pick me up because there’s no sidewalk between my neighborhood and that park.”
Lindberg said he can manage since he can still get anywhere he needs on a bus and has a strong support network, but he also said not everyone has those resources.
Many people living with disabilities live in the suburbs and use Uber and Lyft to get around, Lindberg said. According to him, those living in St. Paul or Minneapolis benefit from better access to Metro Transit services, but some people living with disabilities are on a fixed income so they might move to the suburbs to save money.
“So if they [Uber and Lyft] leave, it’s going to affect those blind or vision-impaired people because they aren’t able to get to the grocery store or they won’t be able to get to the things that they need,” Lindberg said.
Reeva Webb, a Brooklyn Park resident and former Metro Mobility user, said she’s not hitting the “panic button” just yet, but she might start looking for local cab companies to use just in case.
She said she prefers a rideshare app to Metro Transit’s Metro Mobility service, because in most cases you have to schedule a ride with Metro Mobility in advance and in some areas the service isn’t available 24 hours a day.
“Uber makes life easier if you’re disabled to get around, do what you need to, it doesn’t have to be scheduled ahead of time,” Webb said.
Until Uber and Lyft decide if they’re leaving or not, Webb said she’s pausing her current job search because she’s concerned about whether she would be able to get to a new job site.
Reconsidering their vote
Some of the Minneapolis ordinance’s biggest critics have said the policy is not worth it if the two rideshare giants leave.
Council Member LaTrisha Vetaw told her colleagues on Thursday that she’s spoken to high school students who use the services to get to school who are worried about their options if the apps are not available.
The ordinance’s authors Council Members Robin Wonsley, Jason Chavez and Jamal Osman, have at different times called Uber and Lyft’s threats to exit the market a bluff or intimidation tactic, but during the City Council’s most recent meeting on Thursday other council members began discussing altering the ordinance.
Council Member Andrea Jenkins gave notice of intent to move reconsideration of the rideshare ordinance to the April 11 City Council meeting.
A notice of intent is a procedural step and typically doesn’t involve a lot of discussion but Jenkins’ agenda item had more than 30 minutes of discussion involving multiple council members.
Jenkins said City Council members are working with state legislators in an effort to reach a “broader” resolution to rideshare driver compensation.
“This simply provides an opportunity that if a new resolution to this issue is achieved that we can then address that issue as well,” Jenkins said.
Council Member Katie Cashman told her colleagues that she supported continuing the conversation on April 11.
“Our body is not kicking Uber and Lyft out of the city, we are enforcing a minimum wage. And they are threatening to rather than comply with that to leave,” Cashman said.
In a social media post on X, Cashman said the council would reconsider their rideshare ordinance with new data provided by the state at the April 11 meeting, but in the meantime, a plan is in motion between the state and city to prevent a gap in service.
For its part, Lyft, which has only threatened to leave the city should the ordinance go into effect, said it was “encouraging” seeing the City Council reconsidering the ordinance.
In a statement, Lyft said it has serious concerns with the state study that was released earlier this month, but could stay in Minneapolis if a lower compensation rate for drivers was agreed upon.
The Lyft-backed rate mentioned in the state study would pay drivers a rate of $0.89 per mile and $0.49 per minute
“While not an ideal solution, these rates would allow us to continue to operate within the city and maintain an affordable service for riders,” Lyft said in a statement.
In an email to Sahan Journal, Uber also said it supports the rate “which is the Minneapolis minimum wage after accounting for expenses and self-employment taxes.”
Competitors eye the market
While Uber and Lyft negotiate with local and state leaders for a better compensation rate, other rideshare companies have expressed interest in operating in Minneapolis, including a locally founded one that’s testing out its app.
According to Casper Hill, a spokesman for the city, only one rideshare company, which he declined to name, has applied for licensing with the city since the higher rates were approved.
Pikkapp, a local startup, wants to begin operations soon. App co-founder Murid Amini testified at a City Council hearing on Feb. 27 and asked drivers to connect with him.
“We’re going to be ready in the next couple of weeks to start operations and we’re ready to take your rides,” Amini said in February.
The app is now available for Apple and Android users where it’s being tested.
Frey has said alternative rideshare apps wouldn’t be able to get up and running in Minneapolis by May 1, but according to Hill once the city receives a license application from a rideshare company, it would take two to six weeks for approval.
“The length of time depends on the application’s completeness. Any new companies will need to follow the city’s permit and licensing process,” Hill said.
In addition to Pikkapp, other apps that have expressed interest in serving the metro include Wridz which operates in nearly 20 cities across the country. According to the Wridz website, drivers keep 100% of fares, booking fees, and tips.
Co-op, a driver-owned company based out of New York, has also expressed interest in starting operations in Minneapolis.
Empower, a rideshare app currently offering rides in North Carolina, Washington, D.C., and New York City, said in a news release they’re coming to Minnesota.
At Empower, drivers set their own rates, keep 100% of the fare and pay the company a subscription fee, according to the app’s website.
Hich Minnesota, which describes itself as the first Minnesota rideshare co-op owned and operated by drivers, has set up a website and a Bloomington office to recruit drivers.
Services you can use now
Riders not wanting to wait for alternative rideshare apps also have options available now. The Twin Cities still has many cab companies, many of them with their own apps.
Metro Transit continues to serve the area with multiple bus routes and light rails.
Jeremy Kramer, a customer service manager for Blue and White Taxi, said passengers can download their Ridesure USA app to schedule rides or get a fare estimate.
Blue and White Taxi even handles medical transportation for people living with a disability.
The company currently has about 250 vehicles and 280 drivers in the region, according to Kramer who said they’ve seen an increase in driver applicants.
“In the last month, we’ve had a lot of drivers come through the door. We have a big waitlist right now just kind of seeing how it all plays out,” Kramer said. “We don’t want to take on too many drivers because we want the drivers that are working for us to make a good income. So we’ve been kind of holding tight to see what happens, I feel like they’re [Uber and Lyft] bluffing.”
Another app, ihaul works with Transportation Plus where you can request taxis, black vehicles, wheelchair accessible vans and airport shuttles.
St. Paul Yellow Taxi doesn’t have an app but services the whole metro while specializing in taxi services and airport shuttles.
For those that don’t mind driving, Hourcar, a nonprofit car sharing company has cars you can use for short rides or up to three days. Vehicle locations can be found on their website.
Evie, a community carshare app, also features vehicles to borrow. Their vehicles are all-electric, with over 170 shared vehicles across the Twin Cities.
