The Capital

Announced exit of Uber, Lyft concerns officials, residents

- By Trisha Ahmed

MINNEAPOLI­S — The future of Uber and Lyft in Minneapoli­s has garnered concern and debate in recent weeks after the City Council voted last month to require that ride-hailing companies pay drivers a higher rate while they are within city limits.

Uber and Lyft responded by saying they would stop serving the Minneapoli­s area when the ordinance takes effect May 1, causing the city to weigh the ordinance it passed. The state could also take action, while riders and drivers are left wondering what could come next.

Here is what we know so far.

What happened?

The Minneapoli­s City Council overrode a mayoral veto last month and passed an ordinance that requires ride-hailing companies to pay drivers a minimum rate of $1.40 a mile and $0.51 a minute — or $5 per ride, whichever is greater — excluding tips, for the time spent transporti­ng passengers in Minneapoli­s.

Supporters of the ordinance said the rate would ensure that companies pay drivers the equivalent of the city’s minimum wage of $15.57 an hour.

Council member Jamal Osman, who co-wrote the ordinance, said in a statement: “Drivers are human beings with families, and they deserve dignified minimum wages like all other workers . ... The Minneapoli­s City Council will not allow the East African community, or any community, to be exploited for cheap labor.”

Many East African immigrants in the Minneapoli­s area work as Uber and Lyft drivers and have advocated for the rate increase.

However, a recent study commission­ed by the Minnesota Department of Labor and Industry found that a lower rate of $0.89 a mile and $0.49 a minute would meet the $15.57-an-hour goal.

Uber and Lyft’s response

Uber and Lyft said they can support the rate from the state’s study. But if the higher rate from the Minneapoli­s ordinance goes into effect, the companies said they will leave the market May 1.

Josh Gold, an Uber spokespers­on, said the company plans on ending its operations in Minneapoli­s, St. Paul and the Twin Cities metro area — including Minneapoli­s-Saint Paul Internatio­nal Airport.

The metro area includes more than 3 million people, which is more than half the state’s population.

CJ Macklin, a Lyft spokespers­on, said Lyft will end its operations only in Minneapoli­s. Lyft will still service the airport but will not pick up or drop off passengers at any Minneapoli­s locations.

The state’s options

Democratic Gov. Tim Walz said he is “deeply concerned” about the possibilit­y of Uber and Lyft leaving the Minneapoli­s area.

Minnesota lawmakers could pass legislatio­n that would supersede the local ordinance. But Walz said the most efficient solution is to ask the Minneapoli­s City Council to work out a compromise.

The city’s options

Minneapoli­s City Council members could vote to change the ordinance, take it back completely or leave it as is.

What people are saying

Arianna Feldman, 31, of Minneapoli­s said she supports the ordinance and has taken close to 2,000 rides on Lyft because she doesn’t drive, has health issues and doesn’t have access to reliable public transit.

“I think it’s really shameful that these multimilli­on-dollar companies are holding us hostage like this and punishing communitie­s for demanding a very basic right to get compensate­d correctly,” she said.

Michael Sack, 34, of Minneapoli­s opposes the ordinance. He has cerebral palsy and serves on the Minneapoli­s Advisory Committee on People with Disabiliti­es.

He urged the City Council and state Legislatur­e to find a way to increase drivers’ pay while keeping ridehailin­g services affordable.

“It is critical to keep the cost of rides down because people with low incomes, which most individual­s with impairment­s have, utilize Uber and Lyft,” he said.

 ?? RICHARD VOGEL/AP 2016 ?? A ride-share car in Los Angeles. The future of Uber and Lyft in Minneapoli­s has been a source of debate in recent weeks after a City Council vote.
RICHARD VOGEL/AP 2016 A ride-share car in Los Angeles. The future of Uber and Lyft in Minneapoli­s has been a source of debate in recent weeks after a City Council vote.

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