Following more than 10 hours of closed-door negotiations on Saturday that DFL lawmakers said ended in a deal with rideshare companies Uber and Lyft, the Minnesota House passed the latest version of legislation that would give rideshare drivers statewide a pay raise and preempt cities, including Minneapolis, from setting their own minimum wage.

Under the “compromise,” Uber will “continue to operate across the state,” Uber senior director for policy and communications Josh Gold confirmed.

“Thanks to the compromise that [Gov. Tim Walz] was able to broker and negotiate, we will be able to continue to operate, and we’re excited about that,” Gold said during an interview with 5 EYEWITNESS NEWS on Sunday.

If the legislation passes in the remaining hours of the 2024 legislative session, drivers will make a minimum of $1.28 per mile and $0.31 per minute.

It’s the lowest rate elected leaders have proposed this year, and even with Uber on board, Gold warned that the 20% pay raise for drivers will increase the price tag for riders.

“So, you know, I don’t know exactly what it’s going to be yet,” Gold said when asked how much the cost of Uber trips would rise.

Asked again, specifically if the rate for riders could go up by as much as 20%, he said, “You know, our goal is to make it lower than that. We want to do what we can to keep rides as affordable as possible… But I do think it’s going to be substantial. And people are gonna feel it in their pockets.”

The proposed $0.31 per minute rate also fell well below the $0.49 per minute rate that the Minneapolis City Council was poised to approve this coming week.

Whether council members go through with the vote or not, the deal made at the Capitol on Saturday night would create a statewide policy, specifically preempting the city ordinance.

In a statement, Council Member Robin Wonsley said she was “deeply disappointed” in the development, accusing Gov. Walz of “stripping Minneapolis of our regulatory authority in order to appease the profit-driven interests of Uber and Lyft.”

Gold and DFL leadership said they couldn’t strike the deal without the preemption.

“I don’t think any of us who are up here for this are for preemption, but we are for the best that we can possibly get for drivers. And this was the best deal we could possibly get for drivers,” House Majority Leader Jamie Long (DFL – Minneapolis) said during a press conference on Saturday night.

On the other side of the aisle, Republican leadership said they were not involved in this negotiation at all. Rep. Pat Garofalo (R-Farmington) and Sen. Jordan Rasmusson (R-Fergus Falls) said they do generally support a statewide approach as opposed to varying city-level policies.

The existing deal between Minnesota lawmakers and the rideshare companies is contingent on final passage of the legislation as hours remain in the 2024 session.

Lyft has not responded to a request for comment and confirmation of the deal with state lawmakers as of this report.