As Uber and Lyft threaten to leave Minneapolis, state lawmakers are working on solution with statewide rideshare rules
ST. PAUL, Minn. — State lawmakers are scrambling to find a statewide compromise on regulating rideshare companies in the final weeks before Uber and Lyft say they will cease operations in Minneapolis because of its ordinance boosting driver pay and providing other protections.
At the state capitol, Democrats are backing a bill that would set rideshare rules, including minimum pay of $1.39 per mile and $0.49 per minute, according to the Senate DFL plan. That's nearly identical to the rates in Minneapolis effective May 1 — the day the rideshare companies say they will exit. Gov. Tim Walz vetoed legislation last year.
House Majority Leader Jamie Long, DFL-Minneapolis, said the Democrats authoring the bill — including him — are working with the city to find a solution, so both Minneapolis and the state are on the same page with their regulations. DFL lawmakers are not considering preemption legislation that would override what the city passed.
"I think we're making really good progress. We've been working with Uber and Lyft through the bill language, been working with the city of Minneapolis as well trying to find a path forward to agreement," he said "So I'm confident we can by the end of session."
But House Republicans argue the state can't afford to wait for a compromise and urged Democrats to take up their preemption bill. They plan to make a motion to suspend the rules during floor debate Thursday evening, so they can bypass some of the legislative process and take a vote on it.
"This is not an unexpected natural disaster. This is not a crisis of current events. What we have before us is a Democrat-created crisis," said Rep. Pat Garofalo, R-Farmington.
Garofalo said the companies' exit isn't a "switch" and noted that the impact is already being felt in the Twin Cities. The Star Tribune reported that Hertz is ending its car-rental program for rideshare drivers whose personal vehicles need repairs and that the Hennepin County public defender is concerned about defendants showing up to court appearances without Uber and Lyft.
The Minneapolis City Council could reconsider the ordinance at a meeting next week, after a council member made a motion two weeks ago. When asked if the city could delay the effective date beyond May 1, Long said they could make that decision—and welcomed it.
"I'd certainly love if the city council gave us more time," Long said.
But for now, Minneapolis is planning for a new reality without the companies as that deadline looms. Last Friday, some drivers announced they would launch a co-op, which has operated in New York City for a few years with thousands of drivers participating, in absence of Uber and Lyft. Gov. Tim Walz this week was skeptical that any new app would be able to plug service gaps due to their departure.
"We have what I can only describe as magical thinking that in the next 30 days, somebody's going to create a new app that folks around the world and country are going to know to use when they come to Minneapolis," Walz said Monday.
A spokesman told WCCO that four new rideshare companies have already applied for a license to operate in Minneapolis.
"I respect the fact that the Democrats have created this crisis and they think they can solve it themselves," Garofalo said. "Just understand that for the DFL caucus, this is a flesh-eating disease on their political future."
