Uber/Lyft in Minneapolis: City council proposes extension to rideshare ordinance implementation

The Minneapolis City Council is considering a delay to its new policies for rideshare driver pay in an effort to better prepare for changes to the industry.

As it stands, the council's ordinance mandating higher pay is slated to go into effect May 1. Minneapolis City Council President Elliott Payne and council members Katie Cashman and Aurin Chowdhury announced Wednesday morning they'll introduce a measure to push that date to July 1.

Uber and Lyft say they'll leave Minnesota if the rule takes effect; other companies are considering moves to the state. The state Legislature is working on creating its own policies, too. Council members said that an extension will give everyone more time to get ready for a smooth transition.

The council will vote on the extension Thursday.

Three new rideshare companies have submitted applications to work in Minneapolis to fill the void if Uber and Lyft leave, according to the statement.

The release stated the extension is to ensure “limited disruption in the transition to new rideshare service companies and allowing the Minneapolis City Council to track discussions and continue ongoing collaborations with state officials in their work to craft a statewide policy.

“Supporters of an extension believe this will provide the needed time to allow new companies to be ready to serve the diverse communities who rely on these services while ensuring the largely immigrant workforce can live and work in dignity.”

The full statement from council members Payne, Cashman and Chowdhury reads:

“Uber and Lyft drivers are being paid a subminimum wage and that is fundamentally wrong and goes against our shared values. We passed this ordinance because the current rideshare system is broken, and we were shocked to see the way it is leading to exploitative labor practices. Inaction was not and is not a choice. This ordinance is one step forward in correcting this broken system.

“These changes will allow for any companies that want to work in the city and pay the fair wage time to set up in the event Uber and Lyft choose to leave Minneapolis instead of paying workers a living wage. We know that three new rideshare companies to date have submitted applications for Transportation Network Company licenses, and we want to ensure there is limited disruption in allowing these companies and others time to be up and running.

“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. 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.”