In a decisive move, the Minneapolis City Council voted on Thursday to override Mayor Jacob Frey's veto of a rideshare plan that could potentially lead to a clash with industry giants Uber and Lyft regarding driver pay.

The controversial ordinance, which sets minimum earnings for drivers providing rides, is slated to take effect on May 1. Both Uber and Lyft have strongly expressed their intention to cease operations in Minneapolis, and potentially throughout Minnesota, in response to the new regulations.

The council's decision means that the ordinance will proceed as originally approved, unless any changes are made prior to the May 1 deadline. Last week, the council had endorsed the plan with a veto-proof majority. Mayor Frey swiftly vetoed the proposal, prompting the special meeting on Thursday to address the override vote promptly. Frey argued that if his veto were to be overridden, it would be best for the city to have sufficient time to prepare.

Currently, Uber and Lyft are the only licensed ride-hailing companies operating in Minneapolis, although several local startups and existing enterprises have expressed interest in stepping in to fill the void. However, as of now, no formal license applications have been submitted.

For years, a united group of drivers has made vocal complaints about diminishing earning shares from Uber and Lyft, leading to financial struggles for some drivers. Many of these drivers were formerly employed by taxi companies before the rise of Uber about a decade ago. Critics argue that the business model of ride-hailing companies relies on the exploitation of drivers, despite their recent reports of profits.

This group of organized drivers found support from liberal members within the city council and the state legislature. Minneapolis and the state capitol approved new minimum standards last year, but both Mayor Frey and Governor Tim Walz issued vetoes. The composition of the city council changed after the November election, paving the way for the revival of the minimum wage equivalency proposals.

Supporters of the ordinance on the council aimed to ensure drivers could earn a minimum equivalent to the city's hourly wage of $15.57. However, a comprehensive study commissioned by the Department of Labor and Industry, released a day after the council's vote, suggested that drivers could earn less than the Minneapolis plan despite benefits like health insurance and paid time off. The study proposed payment rates of 89 cents per mile and almost 49 cents per minute to achieve minimum wage equivalency for rides across the metro. Payment rates of at least $1.21 per mile and 49 cents per minute, the study argued, would provide drivers with a suite of benefits including paid leave, health insurance, and retirement savings.

In contrast, the plan approved by the City Council guarantees a minimum payment of $1.40 per mile and 51 cents per minute. Wheelchair-accessible vehicle drivers would earn $1.81 per mile, while Mayor Frey had advocated for a minimum payment of $1.20 per mile and 35 cents per minute. Additional provisions in the approved plan include a $5 minimum payment for any ride, annual increases for drivers' earnings, and restrictions on wage deductions.

The impact of the rideshare plan on the more than 7,000 active Uber drivers in the state remains uncertain. Perspectives on the issue vary widely among drivers, with some vocal coalitions of drivers supporting the council's approved plan. Another group has lobbied for compromise, urging the council to lower the minimum earning standards to $1.30 per mile and $0.35 per minute. Last week, over 300 Lyft drivers signed a petition opposing the council's plan. Some individual drivers have gone on record to express their satisfaction with the current state of affairs.

The override vote saw Council President Elliott Payne, Vice President Aisha Chughtai, and Members Robin Wonsley, Jeremiah Ellison, Jamal Osman, Katie Cashman, Andrea Jenkins, Jason Chavez, Emily Koski, and Aurin Chowdhury voting in favor of the measure. Council Members Michael Rainville, LaTrisha Vetaw, and Linea Palmisano opposed the override, mirroring the same breakdown as the original vote.

As May 1 approaches, all eyes turn to the impending collision between the Minneapolis ride-hailing ordinance and the potential departure of Uber and Lyft from the city, leaving a void that other entities may seek to fill. The finality of the council's decision, and its potential consequences on both drivers and passengers, hangs in the balance.