DFL leaders, Minneapolis announce deal on rideshare pay
ST. PAUL, Minn. — Key lawmakers and DFL legislative leaders on Monday announced that they have a compromise on statewide rideshare regulations in Minnesota, but Uber and Lyft quickly rejected the plan and said that they will still exit the market if the proposal becomes law.
The amendment, which will be heard in a House committee Tuesday, includes a minimum wage pay rate of $1.27 per mile and 49 cents per minute. Leaders said they worked with the Minneapolis City Council on finding compromise, but the companies were not included in the negotiations.
The proposal is lower than the Minneapolis rate of $1.40 per mile and $0.51 per minute, but higher than study done by the Minnesota Department of Labor and Industry, which determined $0.89 mile and $0.49 for the Twin Cities metro would bring driver pay up to the city's minimum wage of $15.57 an hour.
"This was a really big move for the Minneapolis City Council. This is coming down 13 cents from the rate that they passed. And this is consistent with the rates that Uber and Lyft are operating with and other states and other jurisdictions," House Majority Leader Jamie Long, DFL-Minneapolis, who was a key negotiator, told reporters. "We know that the companies have said the same thing in other states. They've said that they were going to leave at certain rates, and they've stayed and been able to operate profitably."
Uber and Lyft quickly responded that they will still plan to leave Minneapolis — as they said would happen on July 1, when the city's ordinance is effective — and the state if this becomes law.
A spokesperson for Lyft said in a statement that the rates would be "incredibly damaging" for both riders and drivers.
"Rides would become unaffordable for most across the state, not just in Minneapolis, and drivers would earn even less. It would make the service unsustainable in Minnesota and we would be forced to shut down throughout the state, should it pass," the company wrote.
An Uber spokesman echoed Lyft, saying in a statement the company would also exit the market should the statewide deal between Democrats in the city of Minneapolis and at the legislature become law.
"It's disappointing some in the legislature are allowing the Minneapolis City Council to drive a decision that impacts millions of people who don't live in the City. We've made a serious offer and hope we can still work with the Governor and legislature on a statewide solution that allows rideshare to remain in the state," a company spokesman for Uber wrote in an email.
Long said he thinks Uber and Lyft are bluffing when they say they will leave Minnesota, but he did leave the door open to further compromise. He reiterated that the reason he and others worked with the city council is because he doesn't want preemption, or overriding a local government's decision.
If this law passed, the city council would amend their ordinance to reflect the state's rates.
"They didn't consult us on the rates that they put out and said we're their bright lines, too. So we're still in negotiation. I called [the companies] both today and let them know about the agreement. And I'm sure there will be further dialogue," Long said.