MPLS Mayor Vetos Uber/Lyft Pay Raises, Setting Up Council Showdown

MINNEAPOLIS — Minneapolis Mayor Jacob Frey on Friday vetoed the proposed pay raises for rideshare drivers that were green-lit by the City Council less than 24 hours ago.

But the council's 9-4 vote on Thursday would be enough to override the veto if those votes hold at the next meeting, scheduled for March 21.

If the council successfully overrides Frey's veto, Uber and Lyft plan to leave Minneapolis on May 1, when the ordinance would go into effect, the Star Tribune reported.

The ordinance that passed Thursday requires drivers to receive $1.40 per mile and 51 cents per minute during a ride, or $5, whichever is more.

Additionally, the bill requires annual increases based on the city's minimum wage. And if a ride is canceled while the trip has already begun, the driver can expect 80 percent of the fare.

Last year, Gov. Tim Walz vetoed a similar bill passed by the Minnesota Legislature, saying it wasn't ready to become law.

"This bill could make Minnesota one of the most expensive states in the country for rideshare, potentially putting us on par with the cost of rides in New York City and Seattle — cities with dramatically higher costs of living than Minnesota," Walz told state lawmakers at the time.

The state bill would have required drivers to be paid at least $5 per ride, or at least $1.45 per mile and 34 cents per minute in the Twin Cities metro area.