Minneapolis City Council unanimously moves to delay start of rideshare ordinance until July

Nightcast: rideshare ordinance delayed

Nightcast: rideshare ordinance delayed

Four weeks after formally approving a controversial rideshare ordinance by overriding the mayor’s veto and less than three weeks before it was set to take effect, the Minneapolis City Council has now unanimously moved to delay the measure’s start date.

Thursday morning, the council voted to push the effective date of the ordinance that sets minimum pay requirements for rideshare drivers in the city from May 1 to July 1. Several council members announced and expressed support for the two-month delay on Wednesday, saying they believe it will help support up-and-coming rideshare companies that are trying to get licensed in Minneapolis.

While many companies have expressed interest in trying to fill the void that will be created if Uber and Lyft leave the city — something they’ve threatened for months as the ordinance progressed — a data request shows that four companies had actually applied to be licensed in the city as of April 4, with those applications in various stages. Those companies are MOOV, Joiryde, MyWeels and Wridz. The city has said it can take between two and six weeks for approval.

Meanwhile, state lawmakers continue to work on a statewide rideshare measure. If one is approved this session, it’s expected to happen by the end of May, meaning it could preempt the city’s ordinance, although that’s far from certain.

Uber and Lyft both confirmed to 5 EYEWITNESS NEWS that they will now stay in the city until July 1.

A delay is not a fix. While Council continues to make a mess of this, I’ll be working with policymakers and partners from across the disability, hospitality, and business communities to find a path forward for drivers and riders,” Minneapolis Mayor Jacob Frey said in a prepared statement. However, he’s expected to let the delayed start take effect.

Other amendments were also offered during Thursday’s meeting. Ward 13 representative Linea Palmisano also introduced a measure to rescind the rideshare ordinance entirely, which failed 3-10. Council members Andrea Jenkins and Emily Koski also introduced an amendment to change the ordinance’s per mile rate from $1.40 to $1.21 — the comprehensive rate recommended in the state’s report. That also failed 3-10.

Once again, the hearing hot heated at times and council members on both sides of the issue passionately spoke about the ordinance, occasionally drawing some applause from community members in attendance.

“I spoke with a couple of the new proposed rideshare companies and one in particular told me that they don’t even know if they’re gonna be able to meet the demand of how much Minneapolis is requiring for payment in our ordinance, so it’s gonna be interesting to see how this shakes out with new companies, and then the second part about a new company is it takes a lot of work and a lot of time to start a new business and this feels extremely rushed,” Ward 4 representative LaTrisha Vetaw said at Thursday’s meeting.

Minneapolis rideshare ordinance delayed

Minneapolis rideshare ordinance delayed

Vetaw noted the council wouldn’t wait for the state report when crafting the ordinance but pushed back the effective date from April to May, now is trying to delay it two additional months.

Palmisano, in introducing her motion to rescind the ordinance, thanked council member (Andrea) Jenkins “for finding a way for us to stop this train,” adding, “A sign of good faith here is to start over.”

“This ordinance started with the good intent to ensure every rideshare driver earned a city-mandated minimum wage but it is now so tainted with negative public opinion and outcry that I find it unsalvagable,” Palmisano said, noting Uber and Lyft’s plans and anger from community.

Jenkins, however, noted the work that went into the measure and said she believes the council needs to “refine” rather than rescind.

“We did not go into this foolishly. We went into this thoughtfully and it is exactly why today I will continue to support what we passed last month by supermajority,” Ward 2 representative Robin Wonsley, one of the ordinance’s authors, said. Several other council members railed against Uber and Lyft, saying the companies exploit workers and the ordinance was created to prevent that.

Uber said the delay gives it “more time to continue to work with State leaders” on a widespread solution while Lyft added, “We are encouraged the Council is recognizing the flaws in their incredibly damaging ordinance” but reiterated that the ordinance will still force it to leave the city if it takes effect.

Members of the Minnesota Uber/Lyft Drivers Association also spoke Thursday afternoon, saying they support the delay and the council for its commitment to the drivers.

“While this development may pose challenges, the resolve of drivers to pursue fair treatment remains unwavering,” Eid Ali, MULDA’s president, said.

Some Republican state lawmakers also called for Minneapolis to just wait for the state to pass legislation following this latest development. CLICK HERE to see the proposed bill.

Click here for more coverage of rideshare legislation.