Rideshare Co-op Launches to Replace Uber and Lyft in Minneapolis – Will It Succeed?

Minneapolis, Minnesota – As Uber and Lyft prepare to potentially leave the Minneapolis area next month due to a driver-pay ordinance, a group of activist drivers is stepping up to fill the void. They have announced plans to establish a driver-owned rideshare cooperative, aiming to ensure continued service for residents.

The establishment of this cooperative comes after a long battle for minimum-pay requirements led by the same group of drivers. The potential exit of Uber and Lyft has prompted a flurry of new ventures in the Twin Cities, with some promising to comply with the city’s regulations.

One of the unique aspects of the proposed co-op is its backing by the Minnesota Uber and Lyft Drivers Association (MULDA), which has garnered support from City Council members and legislators advocating for fair pay in the industry. The cooperative model is based on a successful 12,000-driver-strong co-op in New York City, giving it a solid foundation to build upon.

With no corporate shareholders, the cooperative venture aims to differentiate itself from traditional rideshare companies, appealing to those who may be wary of the profit-oriented nature of Uber and Lyft. The goal is to create a new era of justice in the rideshare industry, with plans to eventually expand services statewide.

However, the road ahead is challenging, requiring significant funding to get the cooperative off the ground. To gauge interest and attract investors, the organizers are urging both drivers and riders to sign up for the cooperative app. The success of the endeavor hinges on the support and participation of the community.

In addition to the cooperative initiative, other ride-hailing ventures like Hich are also exploring opportunities in the Twin Cities. These new entrants, including MOOV, MyWeels, Empower, and others, are looking to capitalize on the gap left by the potential departure of Uber and Lyft.

As these new players enter the market, ensuring compliance with local regulations and building trust among users will be crucial. The evolving landscape of ridesharing in Minneapolis highlights the resilience and innovation of drivers and entrepreneurs in addressing the changing needs of the community.