Uber and Lyft have officially secured their position in Minnesota. Following negotiations, Governor Tim Walz has signed a new bill to ensure the continuation of these popular rideshare services.
Earlier this year, the Minneapolis City Council proposed an ordinance to increase driver pay by $1.40 per mile and $0.51 per minute. In response, Uber and Lyft threatened to pull out of Minnesota altogether. Minneapolis Mayor Jacob Frey vetoed the bill, leading to further negotiations and anxieties about ridesharing in the state.
The final legislation reached during the 2024 Minnesota legislative session strikes a balance between driver compensation and the viability of rideshare services in the state.
The compromise raises driver pay by $1.28 per mile and $0.31 per minute, which amounts to a 20% pay increase. While it falls short of the original proposal, it represents progress after years of advocacy by rideshare drivers.
The legislation includes insurance provisions for rideshare drivers. Minnesota now boasts one of the most comprehensive driver protections in the U.S.
Uber has warned that the bill may increase prices, affecting riders and drivers. However, with Uber and Lyft staying put, users now have more options and potentially better services.
Eid Ali, president of the Minnesota Uber/Lyft Drivers Association (MULDA), expressed mixed feelings about the compromise to CBS. While acknowledging it as progress, he also voiced disappointment, especially considering previous vetoes by Walz and Frey due to pressure from the rideshare companies.
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