Minneapolis Minimum Wage Ordinance Could Face Reconsideration Amidst Uber and Lyft Departure Threats
ICARO Media Group
In a bid to salvage the impending departure of Uber and Lyft from Minneapolis, council member Andrea Jenkins has introduced a "notice of intent to move reconsideration" for Ordinance 2024-009 at the upcoming City Council meeting on April 11, 2024. This controversial minimum wage ordinance, which had prompted the rideshare giants to announce their cessation of operations in the city starting from May 1, will now come under review.
The ordinance, passed by the City Council on March 7, mandates that rideshare drivers receive a minimum rate of $1.40 per mile, 51 cents per minute, and $5 per ride. Furthermore, drivers are entitled to 80% of any cancellation fee charged to a rider.
Following the enactment of the ordinance, Mayor Jacob Frey swiftly vetoed it the next day. However, the City Council subsequently voted to override Mayor Frey's veto, leading to Uber and Lyft confirming their intention to cease operations in Minneapolis.
According to Lyft, the ordinance "makes our operations unsustainable," while Uber expressed concern that it would result in drivers losing their livelihoods. Uber plans to discontinue services not only in Minneapolis but in the entire metro area, including the airport. Lyft, on the other hand, has only indicated a shutdown of operations within Minneapolis.
Mayor Frey expressed his support for increasing drivers' wages, but argued against the specifics of the ordinance. Citing a state report, he highlighted that drivers would need 89 cents per mile and 49 cents per minute to earn the minimum wage.
In response to the notice of intent, Mayor Frey expressed gratitude to Council Members Jenkins and Palmisano for their partnership and willingness to reevaluate the ordinance. He emphasized the importance of engaging all relevant stakeholders to find common ground, ensuring that rideshare drivers receive a raise while maintaining accessibility for riders.
The move by Council Member Jenkins to reconsider the ordinance's impact is surrounded by uncertainty. The original ordinance had secured a 9-4 vote in favor, followed by a 10-3 vote to override the mayoral veto.
Meanwhile, both Republicans and Democrats in the state legislature are currently contemplating separate rideshare bills. Last year, Governor Tim Walz vetoed a statewide measure after similar threats were issued by Uber.
As Minneapolis braces for the potential departure of Uber and Lyft, the fate of the minimum wage ordinance remains uncertain. The City Council meeting on Thursday will provide further insight into the potential reconsideration and any potential compromises that can address the concerns raised by rideshare companies, drivers, and the city's leadership.