Minneapolis considers upping pay for Uber, Lyft drivers
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Three Minneapolis council members want to create minimum payment levels for Uber and Lyft drivers.
How it works: The proposed ordinance would require rideshare companies to pay drivers at least $1.40 per mile and 51 cents per minute during the Minneapolis portion of a trip. Every ride would require at least a $5 payment.
Why it matters: The push puts a heated fight over pay for workers in the council's court — at least for now — after Gov. Tim Walz vetoed in May statewide legislation with slightly smaller rates.
State of play: Drivers say these minimums are needed to provide a livable income and job protections.
- Rideshare companies say it will drive up the cost of transportation for people who don't have cars and rely on rideshare services.
Between the lines: The Minneapolis ordinance proposal comes days after Walz announced a new task force to come up with policy change ideas by January. Both Uber and Lyft, which are on that task force, said Minneapolis should wait for that group's recommendations.
- Uber spokesperson Freddi Goldstein said the company is looking forward to "coming up with a framework for statewide legislation — which is how this issue should be handled, rather than a patchwork of different rules and regulations statewide."
- Lyft said 56% of its rides in the Twin Cities begin or end in low-income neighborhoods and a majority of riders are below the state's median income level
The other side: A group of drivers called the Minnesota Uber Lyft Drivers Association is pushing for faster action.
- "You get deactivated for declining rides that are not profitable, yet they call you an independent contractor. Deactivation means you're out of work. You have no way to support your family," said one driver, per Sahan Journal.
What's next: The Minneapolis ordinance, authored by council members Robin Wonsley, Jason Chavez, and Jamal Osman, will get its first hearing on Aug. 8. It would need seven votes on the 13-member council to pass.