In a move that will postpone decisions until the new year, Minneapolis City Council members Robin Wonsley, Jamal Osman, and Jason Chavez have announced that efforts to pass a rideshare ordinance aimed at improving pay and workplace conditions for drivers will continue into 2024. This delay is intended to provide city staff with ample time to evaluate three different options for compensating rideshare drivers more fairly.
The announcement comes amidst growing dissent within a rideshare organization that has played a pivotal role in advocating for better conditions for drivers. Council Member Wonsley expressed her desire to resolve the issue this year, particularly after Governor Tim Walz vetoed a similar state legislative measure in May, and Mayor Jacob Frey vetoed the City Council’s first rideshare ordinance in August.
Wonsley, Osman, and Chavez revealed that they have introduced a legislative motion, prompting city staff to analyze three “minimum compensation models” for paying rideshare drivers. The analysis will be presented at a January 19 meeting. The three proposed models include:
- Model A (Original Proposal): Minimum compensation of $1.40 per mile and $0.51 per minute during customer transportation.
- Model B (Mayor Frey’s Proposal): Minimum compensation of $1.17 per mile and $0.35 per minute during customer transportation.
- Model C (Alternative Proposal): A flat rate of $24 per hour, applicable only when en route to pick up a customer or during customer transportation.
The City Council had initially passed an ordinance in August, guaranteeing drivers a minimum compensation of $0.51 per minute and $1.40 per mile within city boundaries, increasing annually in proportion to the city’s minimum wage. However, this ordinance faced a veto from Mayor Frey, who sought more data analysis before making a decision.
The rideshare giants, Uber and Lyft, had actively opposed both the state bill and the initial Minneapolis ordinance. They had threatened to limit operations across the state and cease operations in Minneapolis if the city ordinance was enacted.
Meanwhile, internal conflicts within the Minnesota Uber/Lyft Drivers Association (MULDA) have surfaced, resulting in a split within the group. Some members, led by Mohamed Egal, accuse the association’s president, Eid Ali, of making decisions misaligned with their interests and being unwilling to negotiate with key stakeholders.
As Minneapolis navigates this intricate landscape, the fate of rideshare regulations hangs in the balance, awaiting further deliberation and analysis in the coming year.
