Uber, Lyft Set To Leave Minneapolis After Council Overrides Frey Veto

MINNEAPOLIS — The Minneapolis City Council on Thursday overrode the veto of Mayor Jacob Frey on a controversial ride-share ordinance.

The ordinance will go into effect May 1, the date ride-share companies Uber and Lyft plan to cease operations in the city.

The measure that passed Thursday requires drivers to receive $1.40 per mile and 51 cents per minute for all portions of a ride occurring within Minneapolis. The rates best approximate the city’s $15.57 minimum wage, supporters say.

Additionally, the bill requires annual increases based on the city's minimum wage. And if a ride is canceled while the trip has already begun, the driver can expect 80 percent of the fare.

The median earnings for drivers in the metro area is $13.63, with 25 percent of drivers in the metro area earning under $10.54 per hour, according to state labor data.

"This is a David and Goliath story," Council Member Robin Wonsley said immediately after the vote Thursday.

"Uber and Lyft want us to believe they are untouchable, and the status quo of exploiting workers cannot be fixed. Today’s vote demonstrated that all of this was just a question of political will."

Last year, Gov. Tim Walz vetoed a similar bill passed by the Minnesota Legislature, saying it wasn't ready to become law.

"This bill could make Minnesota one of the most expensive states in the country for rideshare, potentially putting us on par with the cost of rides in New York City and Seattle — cities with dramatically higher costs of living than Minnesota," Walz told state lawmakers at the time.

The state bill would have required drivers to be paid at least $5 per ride, or at least $1.45 per mile and 34 cents per minute in the Twin Cities metro area.