1 new rideshare company approved to operate in Minneapolis, 4 others still awaiting

Uncertain future for rideshare apps

Uncertain future for rideshare apps

Statewide legislation on pay for rideshare drivers is moving forward, and Uber and Lyft are still threatening to leave Minnesota if it passes. Meanwhile, a handful of new rideshare companies are waiting patiently for approval to start up operations.

RELATED: Minnesota lawmakers announce rideshare deal, Uber and Lyft say they’ll leave if it’s passed

A spokesperson for the City of Minneapolis says so far one company, MyWeels, has been approved for a transportation network company (TNC) license, and four more companies are waiting for the green light.

One of those companies is Wridz. Back in 2017, Steve Wright says he started the company with two goals.

“We noticed there was a lot of safety factors that should be implemented that aren’t and we also noticed that drivers were really being mistreated and underpaid,” Wright said.

First established in Austin, Texas, Wridz has made its way to 22 other cities across the country and now has its eyes on adding Minneapolis to the list.

“Even if the other companies stay, we’re an alternative. We’re an option,” Wright said.

Another company ready to set up shop in Minneapolis is D.C.-based Empower.

“Drivers in D.C. using Empower are providing almost 10,000 rides a day,” Josh Sear, Empower’s CEO said.

Both companies say they act as the server, which makes drivers independent contractors. Neither app takes a penny from the rides given.

“It’s just a monthly subscription and then the drivers get to keep everything on the fare side,” Wright said.

With Empower, drivers set their rates.

“They’re able to charge riders a bit less than what Uber and Lyft typically charge and still make more money. So, riders are also saving about 10-20%,” Sear said.

Meanwhile, Wridz has set pricing but promises there will never be surcharges.

“We don’t manipulate the fares. It is what it is. It’s miles and minutes,” Wright said. 

And while Uber and Lyft’s future in Minnesota remains in limbo, both Wridz and Empower say they’re ready to step up for drivers and riders across the state. Both companies adding they fully support the proposed Minnesota legislation for driver minimum wage.

“Whatever service professional you may be in Minnesota, you have a right to work for yourself and determine how much you want to charge for your services. Drivers should have that same right,” Sear said. “And we think when they do, it ends up being better for everybody.”

Sear says if Uber and Lyft hold true to their promise to leave in July, Empower will be here before that departure to make sure riders aren’t left stranded. However, Sear says if Uber and Lyft stay, his company’s timeline will be extended with no certain date. 

Meanwhile, Wright says his company has already been pre-approved for a license with the City of Minneapolis pending payment on its license. Wright says on May 15, face-to-face interviews will begin in Minneapolis and says anyone hired can start accepting rides on the Wridz app as soon as they walk out the door.