Lyft offers Minneapolis City Council a rideshare wage compromise to avoid "disastrous outcome"
MINNEAPOLIS — As the Minneapolis City Council prepares to reconsider an ordinance increasing the minimum wage for rideshare drivers, Lyft is again saying the law places untenable demands on the company.
In a letter on Wednesday, Lyft said it was "reaching out to work with the City Council in hopes of preventing the tremendous damage to drivers and riders that Lyft's departure from the city would bring."
Lyft and its cognate Uber have both said they plan to cease operations in Minneapolis starting May 1 if the ordinance is indeed enacted.
The ordinance requires a minimum wage of $1.40 per mile and 51 cents per minute for drivers. Minneapolis Mayor Jacob Frey vetoed the measure after the council's initial vote, but the council overrode his veto.
The council is set to discuss reconsidering the ordinance at a meeting on April 11.
In its letter, Lyft said it "is willing to support the Minnesota Department of Labor and Industry study's recommended $.89 per mile and $.487 per minute rates, which would allow us to continue operating in Minneapolis. "
"These rates would increase driver pay, a goal which we and the City Council share, and allow rideshare services through Lyft to remain affordable to riders," Lyft said.
Frey and Minnesota Gov. Tim Walz have expressed support for using the rates noted in the state's study.
Lyft maintains its position that the ordinance would lead to "a disastrous outcome for riders, drivers, and the City of Minneapolis."
The Minnesota Legislature is deliberating on its own statewide wage proposals, but the requirements as written are similar to the city's.
A group of drivers last month announced intentions to join The Drivers Cooperative to fill the hole Uber and Lyft would create by leaving the city. Walz said it is "magical thinking" that an alternative service could plug that gap before May 1.
