Minneapolis council may still rescind or amend rideshare ordinance
The controversial Minneapolis rideshare ordinance that has been at the center of much discussion in recent weeks may still be changed or rescinded before it takes effect.
Just a week after the Minneapolis City Council overrode Mayor Jacob Frey’s veto of the ordinance — which requires rideshare companies to pay drivers at least $1.40 per mile and 51 cents per minute on rides to, from and through city limits starting May 1 — Council Member Andrea Jenkins formally provided notice of intent to reconsider the ordinance at the council’s meeting Thursday morning.
Lyft has said it will end service in the city if the ordinance takes effect while Uber says it will stop its services in Minneapolis and surrounding metro areas, including the airport.
Those threats have led to concerns from some in the community while Frey and state leaders have expressed frustration with the council for not waiting for a state rideshare report that was released a day after the council passed the ordinance. The state’s report recommends rideshare wages of 49 cents per minute and 89 cents per mile, and while many members initially didn’t want to wait for the state data, they now want to take a closer look at it.
Jenkins’ notice simply gives the council the chance to reconsider the ordinance and possibly make changes, rescind it entirely or continue to wait to do anything until a future date. Despite not having any action to take on the matter at Thursday’s meeting, tensions continued to flare over the issue.
Several of the ordinance’s authors and supporters seemed upset with Jenkins, said they were already working with various stakeholders on a plan and urged her to delete her notice.
“We acted accordingly what we see fit, for the city of Minneapolis, drivers’ rights,” Council Member Jamal Osman, also a co-author of the ordinance, said.
Jenkins, who previously voted in favor of the ordinance, and others responded that they were left in the dark about any work going on regarding the measure.
“It seems strange to me, Mr. Chair, that now people want to say that they’ve been working on this. It’s really important to share that with colleagues and the public that has been coming out in droves to tell us how deeply this is impacting them and the kinds of changes they’re going to make in their lives because of it,” Linea Palmisano said. “Council member Jenkins has done so with this action.”
Other council members also defended Jenkins, who called her notice to stand so the council can vote on anything that is crafted in the coming weeks. She also addressed the group of her council members, who she said have been “apparently secretly working on” something regarding the ordinance.
“It has been named multiple times that nine of the people who voted to override the mayor’s veto have been planning something. Had I known that, as one of the 10 people who voted, this probably would be a different story,” Jenkins said. “I’m trying to create an off-ramp that when this work comes to fruition, that we as a body can take action on it. That’s simply what this is.”
The council can take up the matter at its next meeting on April 11, although some of the council members who opposed her notice said they won’t have specific data they’ve requested from the state until the following week. Either way, the council now seems set on taking a closer look at the state data and, perhaps, finding a middle ground between that and the ordinance members already passed.
“There’s no division that our drivers deserve to earn the Minneapolis minimum wage whenever they are driving, we need to make sure we are calculating accurately,” Council President Elliott Payne said.
Gov. Tim Walz, speaking at an unrelated event on Thursday afternoon, called the council’s reconsideration “a good first step” and said continued compromise is needed before the ordinance takes effect on May 1.
“I am still deeply concerned and somewhat skeptical that they’ll get there,” he added.
Uber said Thursday that it supports the rates outlined in the state report, $0.49 per minute and $0.89 per mile.
Lyft sent the following statement to 5 EYEWITNESS NEWS on Thursday:
“Rideshare has been a major benefit to both riders and drivers in Minneapolis, with the median Twin Cities driver on Lyft earning more than $25 per engaged hour after expenses. And we’re committed to improving driver pay further, which is why we support a minimum earnings standard and why just last month we announced a new earnings commitment where drivers will always make at least 70% of the weekly rider fares after external fees.
“Despite the fact that the Council has repeatedly rejected offers to collaborate on this important issue, we are encouraged that they are now open to reconsidering their extremely damaging ordinance. The legislation they passed will make the service unaffordable for most riders, and drivers would have ultimately earned much less as a result. While we continue to have serious concerns with the state’s study, even it found a rate of $.89 per mile and $.49 per minute would achieve Minneapolis’ minimum wage of $15.57, after expenses. While not an ideal solution, these rates would allow us to continue to operate within the city and maintain an affordable service for riders.”
The Metropolitan Council, which may be called upon to help replace services for some if Uber and Lyft leave, also sent a statement to 5 EYEWITNESS NEWS, saying, “As a public transportation service for certified riders who are unable to use regular transit due to a disability or health condition, Met Council is carefully monitoring the situation and committed to meeting demand for Metro Mobility service.”