Uber, Lyft threaten to end service in Minneapolis if city boosts rideshare driver pay
MINNEAPOLIS - Popular rideshare services Uber and Lyft say a new Minneapolis law could drive up prices or even drive them out of the city.
The ordinance would give drivers a pay bump, but the rideshare giants want the Minneapolis City Council to pump the brakes.
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Uber sent an email to customers reading in part, "If this bill were to pass, we would unfortunately have no choice but to greatly reduce service, and possibly shut down operations entirely."
Uber had a similar message when the state was considering similar legislation. Gov. Tim Walz vetoed that bill – the only veto he's issued during his time in office.
Lyft sent a letter to the City Council on Tuesday morning saying if the proposal passes the company will be forced to cease operations on Jan. 1, 2024 -- the day it would become law.
"While our hope is to be able to continue operating in the remainder of the Twin Cities area and the state more broadly, the outstanding questions within the bill language also puts this future into doubt," the letter said in part.
However, other areas have passed similar laws without losing service.
Kerry Harwin says, just a few years ago, rideshare drivers in Seattle were going through a similar process Minnesota's drivers are going through now, seeking better pay and protections.
"We were able last year to expand that legislation statewide. So Washington State drivers are now the best-paid drivers in the country," Harwin said. "They also enjoy paid sick time paid family, medical leave workers compensation insurance, and just-cause protections against termination."
RELATED: Walz vetoes rideshare wages bill after Uber threatens to halt operations outside Twin Cities over it
Mayor Jacob Frey's office shared a statement with WCCO, saying the mayor supports drivers being paid more, but getting there is "complex" and requires more information.
"This ordinance has moved through the legislative process with little deliberation, and there is essential information needed - including from TNCs -- to make good, transparent policy decisions. The mayor will continue discussions with stakeholders before making a final decision," the office's statement said.
The city council will consider its bill on Thursday. It's currently unclear whether the ordinance will pass, or if Frey would sign it.
Harwin, though, says as drivers call for change, something will have to give.
"Uber and Lyft did not make Washington drivers the best-paid drivers in the country simply out of the goodness of their hearts, or else drivers in Minnesota would be getting the same pay right now," he said. "Uber and Lyft did it because we had strong labor organizing that forced them to come to the table and negotiate."
