Minneapolis, Minnesota – The Minneapolis City Council is rethinking its controversial rideshare plan that led Uber and Lyft to withdraw from the city. The Council’s agenda for Thursday includes a proposal to reconsider last week’s vote overriding Mayor Jacob Frey’s veto, with the final vote scheduled for the following meeting on April 11. This move was initiated by Council Member Andrea Jenkins, raising questions about the decision to override the mayor’s veto.
The uncertainty surrounding the council’s next steps has created a sense of tension, as some council members who previously supported the override may have second thoughts or seek to negotiate with state lawmakers and Governor Tim Walz. The recent override vote paved the way for a new ordinance establishing minimum pay for drivers, prompting Uber and Lyft to announce their departure from Minneapolis starting on May 1. This decision has sparked a swift backlash from various groups, including business organizations and state officials.
Supporters of the ordinance viewed it as a victory for workers, dismissing the companies’ threats to leave. However, Uber and Lyft have stood by their decision to exit, notifying both drivers and riders of their impending departure. The ensuing fallout has highlighted the divide between proponents of the ordinance and the challenges faced by rideshare companies in meeting the new pay standards set by the council.
The release of a state-commissioned study further complicated the situation, as it recommended pay rates that were lower than what the City Council approved but closer to what Mayor Frey had proposed. The council’s decision to move forward with the pay minimums before the study’s release led to a series of events culminating in the veto override. As discussions continue within City Hall, efforts to amend or reverse the council’s decision are underway, raising questions about the possibility of changing the minimum pay standards at the upcoming meeting.
Mayor Frey expressed cautious optimism in response to the latest developments, emphasizing the importance of engaging all stakeholders in the decision-making process to ensure a fair outcome for drivers and riders. While the path forward remains uncertain, the mayor’s office is actively working to address the implications of the rideshare services’ departure, including discussions with driver advocacy and labor groups. As the city grapples with the aftermath of the council’s decision, the ongoing negotiations and potential revisions to the ordinance highlight the complex dynamics at play in regulating the rideshare industry.