Rideshare issue headed for showdown at State Capitol

Rideshare issue headed for a showdown at the State Capitol

Ride share issue headed for a showdown at the State Capitol

A rideshare bill proposed at the Minnesota State Capitol could lead to chaos if Uber and Lyft make good on threats to leave the state if it passes.

An agreement termed a “compromise” this week only included DFL legislators and Democrats on the Minneapolis City Council. Republican lawmakers and Uber and Lyft officials were left out of the negotiations.

“Uber and Lyft aren’t bluffing,” Sen. Jordan Rasmusson, R-Fergus Falls, said about threats by the major rideshare companies to leave Minnesota. “Actually, Uber is already starting to wind down operations, give up leases. They will leave the State of Minnesota if this proposal becomes law.”

One of the authors of the original rideshare pay ordinance in Minneapolis that sparked this latest tussle says she’s not convinced they will leave Minneapolis or Minnesota.

“I can’t speak to whether or not Uber and Lyft are bluffing but I do know if we look at places like New York and specifically Washington, Uber and Lyft are already paying well above $1.27 [per mile] in those places,” says Minneapolis City Council Member Robin Wonsley. “So what we are doing is not unprecedented, and they stayed in those states.”

The agreement between DFL lawmakers and Minneapolis City Council members is for $1.27 per mile and 49 cents per minute, down from the Minneapolis proposal of $1.40 per mile and 51 cents per minute. However, a recent state task force recommended a rate of 89 cents per mile and 49 cents per minute based on a study of rates across the country.

Wonsley says the Minneapolis City Council will go with its original proposal if the state agreement falls through.

“We feel very confident again in providing a minimum wage to drivers that are deserving of it,” she said in an appearance recorded for “At Issue with Tom Hauser.”

Rasmusson predicts a disaster if Uber and Lyft leave.

“Everyone loses. The 10,000 drivers who drive for Uber and Lyft every day for income, they’re going to lose out,” Rasmusson said. “We’re going to have Minnesotans with disabilities who rely on these services to get to their appointments lose out.”

You can see the entire debate between Rasmusson and Wonsley at 10 a.m. Sunday on “At Issue.”