MINNEAPOLIS — The Minneapolis City Council voted to delay the start of its newly approved rideshare ordinance Thursday, securing Uber and Lyft services in the city until July 1.
The rule, as it stands now, requires rideshare companies to pay rates of $1.40 per mile and $0.51 per minute.
It’s not a great look for our city,” Minneapolis Regional Chamber of Commerce President and CEO Jonathan Weinhagen told KARE.
Following the council’s decision to reconsider the parameters of the ordinance, both rideshare companies announced they’d stick around until at least July 1.
Uber statement: “Earlier today, the Minneapolis City Council voted to delay their new rideshare law until July 1.
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MINNEAPOLIS — The Minneapolis City Council decided on Thursday to postpone the implementation of its recently approved ridesharing ordinance, allowing Uber and Lyft to operate in the city until July 1.
After months of back and forth between rideshare companies and Mayor Jacob Frey, who threatened to pull out of Minneapolis by May 1, the ordinance’s original effective date, a decision was made. In its current form, the rule mandates that ridesharing companies pay $0.051 per minute and $1.40 per mile.
However, as a result of the vote on Thursday, the ordinance’s effective date will be postponed until July 1 while the body deliberates over a state-recommended adjustment of $1.21 per mile, keeping the proposed per-minute rate at $0.51.
According to a statement from Frey, who has strongly opposed the ordinance in its current form, “a delay is not a fix.”. “I’ll be collaborating with partners from the business, hospitality, and disability communities to find a way forward for drivers and riders while Council mucks this up even more. “.
During the meeting, Council Member LaTrisha Vetaw expressed her disapproval of the rideshare ordinance implemented by her colleagues and thanked the council for their decision to review it. This expressed her concern for the people of Minneapolis who depend on ridesharing services like Uber and Lyft for their transportation needs.
Vetaw stated, “I will support this as well, but not because I believe it to be a solution….”. “I’ll be supporting it because the fear and anxiety that my constituents have been experiencing stems from not knowing if they will be able to find housing, work, or send their kids to school. This is a terrible policy, and I believe that we should all be willing to acknowledge our mistakes and make the necessary corrections. ****.
Vetaw continued, “I’m hoping my colleagues will have the guts to fix it by July 1st.”.
Several community leaders who participated in the anti-ordinance rally in recent months have stated that their objections go beyond Uber and Lyft’s financial statements.
“We’re all fielding calls from vacation planners asking, ‘What should we do?’ Even worse, we’re hearing from prospective convention attendees, corporate site selectors, and other people who are removing Minneapolis from their list of destinations. It’s not a great look for our city,” Minneapolis Regional Chamber of Commerce President and CEO Jonathan Weinhagen told KARE.
At their meeting on Thursday morning, Emily Koski of Ward 11 and Andrea Jenkins of Ward 8 both called for amendments to the ordinance. Koski said in a statement that delaying the effective date would give stakeholders, rideshare companies, and city officials more time to “adapt.”. “.
One of the ordinance’s authors, Council Member Jamal Osman, addressed the drivers who would be affected directly when the proposal was put to a vote the following morning by Council President Elliott Payne, Council Members Katie Cashman and Aurin Chowdhury.
I would like to speak with the drivers. “This extension is reasonable as we are attempting to collaborate with the state and find a resolution,” stated Osman. “We are and will always be dedicated to ensuring that you receive a fair wage, just like everyone else who is seated here in Minneapolis. You are entitled to this protection. “.”.
While the city searches for a solution, a number of apps and taxi services have expressed interest in stepping up to take over from Lyft and Uber. To replace the enormous number of drivers and operations that Lyft and Uber currently manage, experts predict that it will take several businesses.
Both ridesharing businesses declared they would remain operational until at least July 1 in response to the council’s decision to reevaluate the ordinance’s provisions.
Statement from Lyft:.
The Council’s acknowledgement of the shortcomings in their extremely harmful ordinance is encouraging. In light of their actions today, we will also prolong our services until the newly scheduled July 1st.
“The essential facts, however, will not change: most riders will find rides too costly as a result of this ordinance, which will ultimately result in lower earnings for drivers. For our customers, this is unsustainable, and when the ordinance eventually goes into effect, we would be forced to close our Minneapolis operations. For this reason, Lyft is prepared to accept the suggested $ as a compromise, as per the study conducted by the Minnesota Department of Labor and Industry. $89 per mile as well. 487 per minute rates, which would enable us to keep operating in the city and boost current driver earnings by 17 percent. We can meet the needs of drivers, passengers, and our community at large in this way. “.”.
Uber statement:.
“The Minneapolis City Council decided to postpone their new ridesharing law until July 1 earlier today. This implies that through July 1st, Uber will be available in Minneapolis and the surrounding areas.
“Your voice was very important in this decision; over the past few weeks, you have been making loud and clear calls and emails to City Council members informing them of the need for ridesharing in Minneapolis. We appreciate you raising your voice!
“Yet there is still work to be done. Although this delay is a good thing, we will be working with state leaders in the upcoming weeks to develop a long-term statewide solution that increases driver compensation, safeguards driver flexibility, and maintains ridesharing at an affordable price. “.”.
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