by Tommy Witta
The Minneapolis City Council voted unanimously on April 11 to delay the start of its new rideshare ordinance by two months.
Instead of going into effect on May 1, the new start date is slated for July 1, giving the council more time to consider possible amendments to the law and giving new rideshare providers more time to set up.
Councilmember Aurin Chowdhury said four rideshare startups have submitted applications for licensing as of April 10 to replace Uber and Lyft if they depart. They are MOOV, MyWeels, Joiryde and Wridz. Chowdhury authored the amendment to delay the implementation of the new ordinance.
“I believe the extension of the implementation date is a really good thing for us here to accomplish things…for the ordinance that is really meant to support a fair minimum wage for drivers in the City of Minneapolis and give riders an opportunity to participate in a rideshare economy that is rooted in justice for workers,” Chowdhury said.
During the April 11 meeting, Councilmember Linea Palmisano introduced a measure to rescind the rideshare ordinance altogether, citing the “negative public opinion and outcry” as reason to “start over.” The vote failed, with only Palmisano, Michael Rainville and LaTrisha Vetaw in favor and 10 against.
An investigation by the Minnesota Department of Labor and Industry into rideshare services showed a pay level of up to $1.21 per mile and 49 cents per minute for a ride across the Twin Cities would meet Minneapolis’ minimum wage of $15.57 an hour. However, the city’s new ordinance requires drivers to be paid $1.40 per mile and 51 cents per minute.
Councilmembers Andrea Jenkins and Emily Koski introduced an amendment that aligns more closely with the state’s study on rideshare services. The amendment pays drivers $1.21 per mile and maintains the new law’s per-minute rate at 51 cents. However, it also failed by a 3-10 vote, with Jenkins and Koski joined by Katie Cashman in favor.
Uber and Lyft have said they will pull services from Minneapolis on May 1 if the new ordinance goes into effect. While Lyft hasn’t made an official statement, Uber said it will delay its withdrawal to July 1 to align with the city council’s vote.
Lyft has said it supports the state investigation findings and would be willing to remain in the city on those terms. Mayor Jacob Frey urged the city council to adjust the new ordinance, saying the city’s policy should be based on data and not on “ideologies.”
Tommy Witta writes for Bring Me the News. Article courtesy of Bring Me the News.