Mar 21, 2024 - News

Minneapolis City Council open to tweaks to rideshare ordinance

A group of more than two dozen people stand around a podium with microphones. A man with dark skin stands in front of the microphones, speaking and gesturing as others look on.

Minneapolis City Council Member Jamal Osman (center) speaks at a March 14 press conference surrounded by other council members and supporters of a new rideshare ordinance. Photo: Kyle Stokes/Axios

Several Minneapolis City Council members expressed openness Thursday to amending their new rideshare driver pay ordinance before it takes effect May 1.

Why it matters: While the council has vowed not to bend to Uber and Lyft's threats to leave Minneapolis, their comments Thursday also suggest there's some room for compromise — so long as drivers would still earn the equivalent of minimum wage.

The latest: City staff are asking for as much Minneapolis-specific data as possible from a broader statewide study on Uber and Lyft rides, Council Members Aurin Chowdhury and Aisha Chughtai said.

  • By the week of April 15, city staff will report to the council on whatever numbers they receive.
  • The new numbers could lead to adjustments to the ordinance, which currently sets the minimum rate of pay for a rideshare driver at $1.40 per mile.

Between the lines: In the Twin Cities metro, the recently released statewide study suggested a rate of $1.21 per mile would guarantee drivers a $15.57 minimum wage while also covering vehicle expenses plus a suite of benefits.

  • Yes, but: Council members cited the need for more granular data, saying Minneapolis' gas prices are higher than the rest of the metro.

What they're saying: "The only question is a technical question," said Council President Elliott Payne. "What is the formula that will get us to a guaranteed minimum wage for our drivers?"

What's next: Council members say the city is working to remove startup barriers for Uber and Lyft alternatives that have expressed interest in starting in Minneapolis.

  • Some of those barriers include an approximately $45,000 licensing fee.

Go deeper: Uber threatens to pull out of Twin Cities metro

Editor's note: This story has been updated to clarify when city staffers will present their findings to the full council.

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