DFL lawmakers strike deal to keep Uber and Lyft operating in Minnesota

With the end of Minnesota's 2024 legislative session coming fast, lawmakers have struck a deal they hope will keep Uber and Lyft operating in the state.

The new legislation will set rideshare driver pay at $1.28 per mile and $0.31 per minute. This represents a "20% raise," according to Gov. Tim Walz, who expressed thanks to lawmakers for "coming together to get this done."

Uber has since confirmed that the deal will keep them operating in Minnesota, though it warned that prices will now increase.

"While the coming price increases may hurt riders and drivers alike, we will be able to continue to operate across the State under the compromise brokered by the Governor," the statement reads.

Per DFL Rep. Samakab Hussein, the legislation also includes "the most comprehensive insurance package for (transport network companies) in the nation":

This preempts the planned July 1 implementation of a new rideshare ordinance in Minneapolis that would have seen both Uber and Lyft exit the city.

The ordinance initially passed would have raised driver pay to $1.40 per mile and $0.51 per minute, though a compromise deal set for a vote by the council would have reduced this to $1.27 per mile and $0.49 per minute — slightly more than the deal DFL lawmakers announced Saturday.

As Axios Twin Cities notes , the two companies "won a big concession of their own" with the new deal in the legislature — not only with the preemption of the Minneapolis ordinance, but also because the legislation would "limit local governments' ability to demand data from the rideshare companies."

The Minneapolis City Council agreed to delay implementation of the pay hike in order to give state lawmakers time to find a solution, and the pay rates appear to have the backing of city councilors who pushed for the pay rates, though they are less impressed that a local ordinance has been superseded by statewide legislation.

"Preemption is bad. Period," said Ward 12 council member Aurin Chowdhury. "Any and all attempts to undermine local control are bad. It’s a Republican and corporate tactic used around the country. Legislation moving forward that caves to billionaire corporations is detrimental to future protections for workers."

It's not clear how the new deal will affect Wridz and MyWheels , two new rideshare services that sprung up in Minneapolis in anticipation of the Uber-Lyft exit.

Last year , Walz vetoed a rideshare legislation that would have given drivers better pay and protections, shortly after Uber threatened to withdraw most of its services from the state.