Majority of Minneapolis council now open to tweaking Uber/Lyft ordinance. Maybe.


Most Minneapolis City Council members are now open to changing a rideshare ordinance they just approved that has prompted Uber and Lyft to vow to leave.

It’s unclear whether any changes could satisfy, or be soon enough, to avoid the ride-hailing giants’ planned exodus May 1. But Uber and Lyft said Thursday there’s a possibility they could stay — if the changes are to their liking.

The revelation that a critical mass of council members are open to changes came at Thursday’s council meeting after days of behind-the-scenes discussions, as well as public pressure from a range of voices, from the governor to citizens, and as it appears increasingly likely the companies will make good on their threats.

At issue is an ordinance that sets minimum pay requirements for rideshare drivers at a level that Uber and Lyft say is too high to make it worthwhile to do business here. Earlier this month, the council approved the minimums, effective May 1. Frey, who had proposed lower minimums, vetoed it. The council overrode his veto by a 10-3 vote, and Uber and Lyft announced they would leave, creating the current predicament. (Uber said it would cease service in the entire metro; Lyft said they’d serve everywhere but the city of Minneapolis.)

New Minneapolis plan?

Here’s the new city council plan, according to statements from council leaders and sponsors of the original ordinance:

Staffers from the city will work with state Department of Labor and Industry to figure out what pay minimums can ensure that all or nearly all drivers earn at least the equivalent of the city’s $15.57 hourly minimum wage. Drivers are contractors, not employees, and a state-commissioned study earlier this month concluded that average pre-tip earnings for drivers are below minimum wage.

That study, touted as the largest-ever of rideshare data, suggested that drivers metrowide could earn an average of minimum wage with minimum requirements well below what the city council approved. However, the study, as published, didn’t separate Minneapolis data from elsewhere in the metro. The city should get their hands on the Minneapolis-specific data April 15, council leaders said Thursday.

If the data suggests a lower regimen of minimum-pay requirements could work, council members would propose those new minimums at their April 25 meeting.

One other wrinkle: On Thursday, Council Member Andrea Jenkins introduced a procedural maneuver that could bring about a vote to reconsider the entire ordinance at the council’s April 11 meeting. If such a vote were to be taken and prevail, a simple majority of seven council members could change, or even quash, the entire ordinance.

This is a developing story, check back for updates.

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