Minneapolis Council To Propose Measure To Delay Rideshare Ordinance

MINNEAPOLIS — The Minneapolis City Council is likely to delay the implementation of its controversial rideshare minimum wage ordinance.

The ordinance is set to go into effect on May 1, the same date Uber and Lyft plan to leave the city.

But on Wednesday, Minneapolis City Council President Elliott Payne and council members Katie Cashman and Aurin Chowdhury announced they will introduce a measure to delay implementation to July 1.

The members said the delay would ensure "limited disruption in the transition to new rideshare service companies" and allow the city council "to track discussions and continue ongoing collaborations with state officials in their work to craft a statewide policy."

The measure to delay will likely pass at Thursday's city council meeting, the Star Tribune reported.

So far, three new rideshare companies have submitted applications for Transportation Network Company licenses.

"This is a good faith extension for us as Council Members to work on our legislative process, collaborate with leaders in the state, ensure drivers have the fair compensation they need, and support emerging rideshare companies and riders adopting them," the members said.

"It is on Uber and Lyft to decide if they will treat their workers fairly, pay them adequately, or continue their egregious behavior in scaring the public with their threats to leave the people of Minneapolis behind."

In their own statement Wednesday morning, Members Jason Chavez, Robin Wonsley, Jamal Osman admitted the delay "may or may not influence Uber or Lyft’s decision to leave the city on May 1 in response to Council mandating that they pay minimum wage equivalents," but they "support adjusting the implementation date to July 1 to support new and emerging rideshare companies."

They also said they do not support any effort to rescind the rideshare ordinance, referencing Member Andrea Jenkin's "intent to reconsider" notice she gave at the end of March.

The notice caused "a great deal of confusion amongst the public, as well as concern from new and emerging rideshare companies that Council was going to repeal the ordinance," Chavez, Wonsley, and Osman wrote.

"Jenkins may bring any amendment to the ordinance or motion to rescind the ordinance entirely. She has not shared her intentions with the Council or the public," they added. "We do not support rescinding the ordinance or support changing the rates to subminimum wage equivalents in response to corporate pressure from Uber and Lyft."

May 1 deadline

Both Lyft and Uber plan to cease operations in Minneapolis on May 1, the same day the controversial ordinance is set to take effect.

Lyft told Patch it does not plan to leave St. Paul, the airport, or Minneapolis suburbs. But it will not operate within Minneapolis city limits.

Uber, Lyft's biggest competitor, has different plans. Starting May 1, Twin Cities will become the only metro area in the U.S. without Uber.

"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," Uber Senior Director of Public Affairs at Uber Josh Gold told Patch.

"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."

The ordinance requires drivers to receive $1.40 per mile and 51 cents per minute for all portions of a ride occurring within Minneapolis. The rates best approximate the city’s $15.57 minimum wage, supporters say.

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.

The median earnings for drivers in the metro area is $13.63, with 25 percent of drivers in the metro area earning under $10.54 per hour, according to state labor data.