MN far-left Council drives Uber, Lyft out of city; considering tax dollars to fund small business rideshare companies

3 Min Read

A new local law from the far-left Minneapolis City Council which increased mandated pay rates for rideshare drivers is driving Uber and Lyft to pull out of their city. Uber and Lyft announced their departures from Minnesota’s largest city, leaving the Council needing a solution by May 1 for its citizens.

- Advertisement -

Their proposal, which is slated for discussion during the council’s budget meeting on Monday, would dedicate $150,000 in unobligated general-fund money “for small business financing for transportation network companies,” according to a resolution by four council members.

Omar Adan Ahmed, vice president of the Minnesota Rideshare Association, or MRDA, which has opposed the Minneapolis council’s action, told National Review that expecting some small, relatively unknown company to replace Uber and Lyft in a few weeks is “far-fetched.”

“Uber is an international organization. Lyft is an international organization that has been background-checked, security-oriented, client-friendly and reliable,” Ahmed said.

National Review reports on the consequences of the Council’s decision:

- Advertisement -

 Uber and Lyft have been operating in the Twin Cities for a decade and provide over 1 million rides per month there. Many residents, including older people and people with disabilities, rely on the companies’ drivers to get to work and to medical appointments.

But in early March both companies threatened to leave Minneapolis after the Minneapolis council upped driver-pay requirements to $1.40 per mile and 51 cents per minute. Councilmembers said it was necessary to ensure drivers earned the equivalent of Minneapolis’s $15.57 minimum wage. But they determined the new pay rates without requesting local data from Uber and Lyft and they didn’t invite company leaders to engage in their process.

They also didn’t wait for the release of a state labor study on the matter. A day after the Minneapolis council jacked up pay requirements, the state study was released that found that drivers could earn the equivalent of the minimum wage if they are paid 89 cents per mile and 49 cents per minute, far below the council’s rates. Upping that to $1.21 per mile and 49 cents per minute could afford them benefits, including paid leave and health insurance.

In response to public backlash, some Minneapolis council members have expressed a willingness to revise their ordinance to better align with the state data.

Leave a Comment

This will close in 20 seconds