Lyft and Uber might hit reverse on plans to leave Minneapolis on May 1 over a new minimum wage for rideshare drivers set to go into effect on that day, if a city council measure passes Thursday.
The issue stems from a March decision by the city council to override the mayor’s veto of a minimum wage for rideshare drivers, set at the local minimum wage of $15.57 an hour. That prompted Uber and Lyft to announce they’re ending operations in the city.
Minneapolis City Council members are introducing an extension at this morning’s meeting to push the effective date to July 1, allowing time for lawmakers to hammer out a compromise in the minimum wage law and give more time for new ride-hailing services to start.
Lyft said previously that the bill was “deeply flawed” and that the ordinance made its “operations unsustainable.” Uber said it was “disappointed the council chose to ignore the data and kick Uber out of the Twin Cities, putting 10,000 people out of work and leaving many stranded.”
Mayor Jacob Frey, a Democrat, said he supported a minimum wage for rideshare drivers but opposed the ordinance because it didn’t factor in a Minnesota state study that analyzed how much drivers should be paid.
The ordinance mandates rideshare drivers make at least $1.40 per mile and $0.51 per minute within Minneapolis. However, the analysis Frey referred to showed lower numbers — $0.89 per mile and $0.49 per minute.
Now some council members want to amend the ordinance and lower the per-mile rate to $1.21, but maintain the proposed per-minute rate of $0.51.
“Leadership in decision-making entails gathering information, consulting stakeholders, and making informed choices, while also embracing uncertainty and adapting to new information,” the statement from the council members said, according to CNN affiliate KARE-TV.
“Our goals have and continue to be to ensure fair wages for drivers, stability for drivers and riders, and a healthy, competitive market. With this amendment, we can accomplish those goals.”
The statement was released by Council President Elliott Payne and Council Members Katie Cashman and Aurin Chowdhury. The proposal will be voted on at the 10:30 a.m. ET meeting.
The Minneapolis Star-Tribune reported that there “should be enough votes to enact the delay.”
Uber said in a statement Thursday that the proposed delay would give the company “more time to continue to work with (Minnesota) leaders on a comprehensive statewide solution that raises pay across the state, protects flexibility and keeps rides affordable.”
Lyft didn’t immediately respond CNN’s request for comment.
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