Minneapolis May Give $150K To New Uber/Lyft Alternatives
City officials hope new companies will replace Uber and Lyft, which are currently Minneapolis's sole providers of rideshare. City officials in Minneapolis are hoping new companies will replace Uber and Lyft, which are currently the sole providers of rideshare in the city. Both companies plan to leave the Twin Cities metro on May 1 to protest a controversial ride-share ordinance, which requires drivers to receive $1.40 per mile and 51 cents per minute for all portions of a ride within Minneapolis. The law 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 that required drivers to be paid at least $5 per ride.
Published : a month ago by William Bornhoft in Tech
City officials hope new companies will replace Uber and Lyft, which are currently Minneapolis's sole providers of rideshare. Both companies plan to leave the city on May 1 to protest a controversial ride-share ordinance. Uber will vacate the Twin Cities metro entirely.
"In less than two weeks since the passage of the ordinance, several rideshare companies have expressed eagerness to obtain licensure and begin operations in Minneapolis," the committee said ahead of its Tuesday meeting. "These emerging and expanding businesses are ready to comply with city ordinances and pay minimum wage equivalents and the Council Members look forward to supporting them in providing services to the city."
"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 measure that passed earlier this month 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. "This is a David and Goliath story," Council Member Robin Wonsley said immediately after the vote. "Uber and Lyft want us to believe they are untouchable, and the status quo of exploiting workers cannot be fixed. Today’s vote demonstrated that all of this was just a question of political will."
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. Walz and state Democrats are now working on a more modest proposal, KSTP reported.
Topics: Ridesharing