The Minneapolis City Council voted Thursday to approve pay raises for Uber and Lyft drivers. Here is a look at the issues and possible effects of the ordinance:
Pay
The measure set minimum pay for drivers at $1.40 per mile, plus 51 cents a minute while a passenger is in the vehicle on trips within the city's borders. Drivers would be guaranteed 80% of fees collected when trips are canceled.
The measure would make Minneapolis Uber and Lyft drivers some of the highest-paid in the U.S.
Mayor Jacob Frey has vowed to veto the ordinance and has introduced a counterproposal that would set minimum pay at $1.20 per mile and 35 cents a minute.
Uber and Lyft have already instituted a $5 minimum fee per trip.
Rider impact
Uber and Lyft officials say the higher driver pay would lead to higher fees for riders. The companies say some trip fees could double and that rideshare would become a luxury for those who can afford it. The measure also would harm lower-income earners, they say.
Organizations such as ConnectAbility of Minnesota say higher trip fees would leave people with disabilities without an affordable transportation option.
"This is more multidimensional than a one-side vote about driver wages," said Sheri Wegner, executive director for the nonprofit serving people with cognitive and mental disabilities in 65 counties across the state.
Driver impact
While drivers could earn a higher wage, Lyft and Uber executives say a downturn in ridership could undercut earnings by reducing ride volume.
"This purportedly pro-driver ordinance is actually anti-working family," Lyft Chief Operating Officer Jeremy Bird wrote in a letter sent this week to City Council President Elliott Payne.
Not all drivers are on board. More than 300 had signed an online petition urging the City Council to vote no.
Decision
Uber and Lyft have said they would likely cut back or cease operations in Minneapolis if the city enacts an ordinance governing driver pay. More recently, they have said they would be forced to cease operations in Minneapolis, and possibly the entire state, on May 1 if the ordinance is enacted. City Council appears to have the votes to override a Frey veto.
