Uber, Lyft Promise To Leave MN After Latest DFL Bill

MINNEAPOLIS — Rideshare companies Uber and Lyft say they plan on leaving the state on July 1 after Democrats in the Minnesota Legislature reached an agreement on rideshare driver pay with the Minneapolis City Council.

The bill that Democrats agreed to would set a statewide minimum wage rate of $1.27 per mile and $0.49 per minute.

"We are happy to come to a compromise agreement with the Minneapolis City Council on a minimum compensation standard that aligns with other major metropolitan areas," said House Majority Leader Jamie Long of Minneapolis.

"This compromise represents significant movement from the Minneapolis City Council as we all work towards ensuring drivers in our state are fairly paid."

That pay amount is lower than Minneapolis' controversial ordinance, which will be scrapped, but it's still too high for Uber and Lyft executives to stomach.

"It’s disappointing some in the legislature are allowing the Minneapolis City Council to drive a decision that impacts millions of people who don't live in the City," Josh Gold, a spokesperson for Uber, told Patch in an email.

"We've made a serious offer and hope we can still work with the Governor and legislature on a statewide solution that allows rideshare to remain in the state."

Lyft, which previously promised only to leave Minneapolis if their ordinance went into effect, now said it will vacate all of Minnesota should the state bill pass.

"Lyft continues to support a minimum earnings standard for drivers. However, as was the case with the extremely-flawed Minneapolis ordinance, the proposed rates in the state bill would be incredibly damaging for both riders and drivers," CJ Macklin of Lyft told Patch.

"Rides would become unaffordable for most across the state, not just in Minneapolis, and drivers would earn even less. It would make the service unsustainable in Minnesota and we would be forced to shut down throughout the state, should it pass."

While Uber and Lyft plan their exits, Minneapolis officials are considering allocating $150,000 in small business financing for new and emerging rideshare companies.

READ MORE: Minneapolis May Give $150K To New Uber/Lyft Alternatives