Tag: Lyft

MINNEAPOLIS — Whether they were first time visitors or returning home from a long work trip, Uber and Lyft’s threats to leave Minneapolis have left some travelers’ future up in the air.

On Friday, Lyft sent an email to customers saying that it will not allow any rides to or from the city starting May 1. Uber, on the other hand, says it’ll stop operations in the entire seven county metro including the airport.

It comes after the city council voted to give the drivers a raise. Under the plan, drivers would be paid $1.40 per mile and $0.51 per minute while transporting passengers and would make no less than $5 per ride. They would also keep 80% of fees for any canceled requests for service.

Many factors can determine the price of a Lyft or Uber, including supply, demand, and location. But if the only thing that will change is the “per minute and per mile” rates laid out in the Minneapolis ordinance, a trip from the airport to WCCO’s downtown offices at 7 p.m. on a Friday would increase from $36 to $46. 

“I’m gonna have to figure out a different way to get to and from the airport. I’ll probably end up having to park my truck here which will be like almost triple the cost probably,” said John Shields from Minneapolis.

MORE: Lyft, Uber to stop operating in Minneapolis on May 1 if rideshare ordinance becomes law

“You can’t be upset that prices go up. Because when a wage goes up and it’s one of those things, we really kind of should all be working together when that’s going on and not just kind of pulling out,” said Adam Capel from South Jersey.

In a statement, the Metropolitan Airport Commission said that it does “not expect impacts on rideshare operations or customers at the airport before May 1. We will continue to monitor the situation to determine any potential impacts beyond that date.”

Travelers hope a compromise can be reached before then. Despite threats in the past, Uber and Lyft have never left a city because of a minimum pay increase.

“I think the amount of money that Uber and Lyft are making that I think they can afford it to me. Like they’re being a little bit greedy,” Shields said.

“I’m all for the drivers in this case. I mean, it’s half the price of a cab and it seems like there’s some wiggle room there. So hopefully everybody can kind of come together,” said Nick Mueller of Minneapolis.

“It’s all across the country! People are having minimum wage go up like back in South Jersey and so everybody just kind of has to do their part. Like, you just understand if you go to a restaurant, it’s gonne be a little bit more expensive now because they’re paying that,” said Capel.

Uber and Lyft have said the only way to keep their services in Minneapolis is if state lawmakers pass some sort of compromise during this legislative session. Republicans in the House say they plan to introduce a bill on Monday.

Allen Henry

Allen Henry is an Emmy Award-winning journalist who joined WCCO as a reporter in August 2022.

MINNEAPOLIS — The future of rideshare services in Minnesota’s largest city is hanging in the balance.

On Tuesday, Minneapolis Mayor Jacob Frey spoke out against the ordinance passed last week that would raise driver wages for Lyft and Uber. 

During the news conference, Frey said he supports raising driver wages, but not this way.

Frey said the City Council passed the ordinance before looking at state data — released a day later — and called the proposal “dramatically off.”

The data in question analyzed 18 million rides and offered different solutions that Frey said would strike a balance to boost driver wages and keep rideshare services in the city.

“The proposal the council put forward was wrong. Their stated position was that this was a way to get rideshare drivers to a minimum wage. In fact, there is a substantially lower rate that will both get drivers a minimum wage and will have expenses covered,” Frey said.

RELATED: Minneapolis riders object to Lyft’s, Uber’s plans to leave on May 1

After it passed, several council members called the ordinance “a win for workers, by workers.” They say the move will close a loophole in the city’s minimum wage law. 

Frey vetoed it a day later, but the vote suggests the council has the power to override said veto. On Thursday, the council will vote to either sustain or override Frey’s veto on the ordinance.

If the ordinance sticks, both Uber and Lyft claim ride prices could nearly double in the city. Frey believes the companies will leave like they threatened and will leave the city with no options.

“You’re not able to prop up an entire technology platform and a new rideshare entity that can handle the numbers that we’re talking about in a month-plus period,” Frey said.

Frey said he is feeling optimistic that the council will vote in his favor. If not, Frey believes Uber and Lyft will leave the city by May 1.

Frey blames scheduling conflict after Uber, Lyft drivers fail to show

Rideshare drivers were originally intended to accompany Frey during his news conference Tuesday.

But the drivers didn’t show up.

Before the news conference, a city spokesperson told gathered media members there was a “scheduling conflict with the drivers due to Ramadan.”

Frey himself said their absence may have been due to a rideshare bill on the docket at the State Capitol Tuesday. The bill, which like the Minneapolis ordinance would address pay for drivers, was set for discussion in the Senate Labor Committee at 12:30 p.m. Frey still held the press conference alone at Minneapolis City Hall around 11:15 a.m.

“It’s the conflict between the state’s work and ours and [they] couldn’t do two things at once,” Frey said. “We’re looking into it, though.”

Beret Leone

Beret Leone is a native Minnesotan who joined the WCCO team as a reporter in September 2022 – and she’s thrilled be back home in the Twin Cities! Beret grew up in Chaska and graduated from Bethel University.