Uber, Lyft object to rideshare compromise agreed by DFL lawmakers and Minneapolis

Minnesota DFL lawmakers and the Minneapolis City Council have reached an agreement on rideshare driver pay, but Uber and Lyft have responded by threatening to leave the state entirely if it is enacted.

The bill revealed Monday would raise driver wages to $1.27 per mile and $0.49 per minute, which is lower than Minneapolis ' ordinance but above the rate the rideshare giants have said they will support.

Minneapolis' ordinance is $1.40 per mile and $0.51 per minute while Uber and Lyft say they will draw the line at $0.89 per mile and $0.49 per minute, which a state report found would be the amount required to meet Minneapolis' minimum wage rate of $15.57-an-hour.

Minnesota House Majority Leader Jamie Long (DFL-Minneapolis) said the deal aligns with other major metro areas.

“This compromise represents significant movement from the Minneapolis City Council as we all work towards ensuring drivers in our state are fairly paid," Long said.

The Minneapolis City Council previously moved to delay the rideshare ordinance being implemented by two months, with it now set to go into effect on July 1.

In response, both rideshare giants have said they would leave the state entirely if the new compromise becomes law.

“Lyft continues to support a minimum earnings standard for drivers. However, as was the case with the extremely-flawed Minneapolis ordinance, the proposed rates in the state bill would be incredibly damaging for both riders and drivers," a Lyft spokesperson said.

"Rides would become unaffordable for most across the state, not just in Minneapolis, and drivers would earn even less. It would make the service unsustainable in Minnesota and we would be forced to shut down throughout the state, should it pass."

Uber also provided a similar statement, stating that members of the Legislature are "allowing the Minneapolis City Council to drive a decision that impacts millions of people who don't live in the city."

Both companies claimed they were not involved in the negotiations with Minnesota lawmakers and city council members.

State GOP members have called out DFL leaders, with one of them accusing lawmakers of playing "a very dangerous game of chicken."

“I don’t think Uber and Lyft are bluffing. I think there’s a real risk that tens of thousands of Minnesotans are the collateral damage of this reckless policy," said Sen. Jordan Rasmusson (R-Fergus Falls) at the Capitol on Monday.

A Minneapolis spokesperson tells Bring Me The News three startup companies are close to becoming licensed to provide rideshare services in the event of Uber and Lyft leaving the city. MyWeels has completed the licensing process while Wridz and MOOV are in the final stages, still needing to submit insurance information and payment.

It's unclear how many companies could fill the void throughout the state.

The amendment is scheduled to be discussed during a House committee hearing on Tuesday and is expected to come before a Senate committee on Wednesday.