In response to mounting pressure from rideshare companies, the Minneapolis City Council has voted to postpone the implementation of a new policy that would establish pay rates for drivers of Uber, Lyft, and other similar services. The effective date of the ordinance has been pushed back from May 1 to July 1, allowing for additional time for new rideshare businesses to enter the market and potentially fill the gaps that would be left by Uber and Lyft's departure.

The decision to delay the implementation of the rideshare pay plan received unanimous support from council members, who believe that the extra time will lead to better outcomes for both drivers and riders in the state of Minnesota. Council Member Robin Wonsley, a co-sponsor of the original plan, expressed confidence that this delay would pave the way for a more equitable rideshare industry, which is currently deemed as extremely exploitative.

Both Uber and Lyft have confirmed that they will delay their departure from Minneapolis until July 1. However, Lyft spokesperson CJ Macklin has reiterated concerns about the new pay rules, stating that they would make operating in Minneapolis too expensive and ultimately result in lower earnings for drivers. Macklin emphasized that this would be unsustainable for customers and could potentially force Lyft to shut down operations in the city.

Mayor Jacob Frey, who previously vetoed the rideshare ordinance, expressed his frustration with the council's decision, stating that a delay does not address the underlying issues. He emphasized the need for modifications to prevent major disruptions for businesses, seniors, people with disabilities, and other affected groups. The mayor intends to collaborate with policymakers and various stakeholders to find a viable path forward for both drivers and riders.

Despite the delay in implementation, the council remains divided on other proposals related to the rideshare pay policy. Attempts to rescind the ordinance altogether and implement a lower rate failed to gain majority support. Council Members Andrea Jenkins and Emily Koski proposed a compromised rate of $1.21 per mile and 51 cents per minute, which fell between the city's approved rate and the rates recommended by a state study. Uber and Lyft have previously stated that they would continue operating in Minneapolis if the rates were set at the level recommended by the state study.

However, a majority of council members did not support this compromise, raising concerns about the rates being too high. Others suggested using the two additional months to develop a more refined rate proposal. Council Member Linea Palmisano, along with Council Members Michael Rainville and LaTrisha Vetaw, sought to scrap the ordinance entirely and start afresh, arguing that it would have a negative impact on various groups. However, their proposal failed to garner enough support.

Council President Elliott Payne emphasized the need to tweak the existing plan rather than completely dropping it, with the goal of ensuring better conditions for drivers. Payne acknowledged the challenges of setting a uniform pay rate that accounts for the varying dynamics of the rideshare industry, but stressed the importance of eliminating exploitative practices.

As the July 1 implementation date approaches, Minneapolis faces a critical juncture in determining the future of rideshare services in the city. The council will continue its efforts to strike a balance between driver compensation and protecting the interests of both drivers and riders.