The recent decision by the Minneapolis City Council to require ride-hailing companies to pay drivers a higher rate while operating within city limits has stirred up concern and debate. The ordinance mandates a minimum rate of $1.40 per mile and $0.51 per minute, or $5 per ride, whichever is greater, excluding tips. This move aims to ensure that drivers receive fair compensation equivalent to the city's minimum wage of $15.57 per hour.
Uber and Lyft have expressed their intention to cease operations in Minneapolis when the ordinance takes effect on May 1. Uber plans to halt services in Minneapolis, St. Paul, and the Twin Cities metro area, affecting over 3 million residents. Lyft, on the other hand, will only discontinue operations in Minneapolis but will continue servicing the airport.
Minnesota Governor Tim Walz has voiced his concerns about the potential departure of Uber and Lyft, emphasizing the statewide impact it could have on various communities, including individuals relying on these services for safe transportation. State lawmakers could intervene by passing legislation that supersedes the local ordinance, although Governor Walz suggests finding a compromise at the city level.
The Minneapolis City Council is deliberating on potential actions, including amending the ordinance, rescinding it entirely, or maintaining it as is. Council members have received feedback from diverse stakeholders, with some supporting the ordinance for its potential to uplift marginalized workers, while others oppose it due to fears of losing access to these ride-hailing services.
Residents in the Twin Cities metro area are divided in their opinions, with some advocating for the ordinance as a means to support workers' rights, while others are concerned about the impact of Uber and Lyft's potential exit. The situation has sparked conversations about fair compensation for drivers, the accessibility of ride-hailing services, and the balance between regulation and affordability.
