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New rideshare companies to stay in Minneapolis, compete against Uber and Lyft

What’s next for the future of rideshare in Minneapolis
What’s next for the future of rideshare in Minneapolis 02:15

MINNEAPOLIS — The rideshare drama appears to be over here in Minnesota. Both Uber and Lyft say they will stay in the state after lawmakers reached a new deal on driver pay at the end of the legislative session.

The state law overrides the Minneapolis City Council ordinance passed in March. Following the deal in the legislature, the city council recalled the ordinance entirely. 

"If Uber and Lyft drivers could make more money, I think that would be great. I think we can all win on this, but I'm glad the state stepped in," rideshare rider Rob Novak said. 

During a press conference Thursday, some city council members took a victory lap. 

"We persevered and passed a strong ordinance this past March that set the terms for the state policy we're celebrating today," said Council Member Robin Wonsley. 

Under the new deal, drivers across the state will receive an almost 20% raise at a rate of $1.28 per mile and 31 cents per minute. During the time of uncertainty over the future of Uber and Lyft, at least two new rideshare companies moved into the market to try to fill the void. 

Currently, there are four companies licensed to operate in Minneapolis: Lyft, Uber, MyWeels and Wridz

Wridz has already launched in Minneapolis with a couple hundred drivers currently on the road, but its founder says they have about 1,500 more drivers in the process of being hired. 

"I welcome more of the other companies to hang in here with us. Bring it on. I think the more, the better, it makes us give better service," Wridz founder Steve Wright said. 

Once fully operational, Wridz drivers will pay $100 per month and take home 100% of their fares, Wright said. 

"We can pay drivers more per mile and minute, even more than what the state's requiring. I think we will be considerably above that while saving the passengers money as well," he said.

MyWeels, which recently launched in Minneapolis too, says they already pay the new state rate. They are working on adding drivers too, and say they will stay in the market to compete. 

"If they can make it convenient for people and have a great app, I don't see why there couldn't be a couple more players in the market," Novak said. 

The new rates will go into effect on Dec. 1. 

An Uber spokesperson said riders will see an increase in prices, but it will do whatever they can to make it as low as possible. 

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