Uber and Lyft Score a Major Win in Minneapolis

The Minneapolis City Council failed Thursday to override Mayor Jacob Frey’s veto against a new law that mandated ride hailing companies pay higher wages and give more protections to drivers. Uber and Lyft had threatened to shut down their operations by January 2024 if the ordinance became law.

The 13-member Minneapolis City Council needed a minimum of nine votes to overturn the veto but secured just four, as some council members who backed the law were absent during the vote.

The ordinance sought to raise drivers’ minimum compensation to $0.51 per minute and $1.40 per mile in Minneapolis, and give drivers rights like the ability to appeal account deactivations and suspensions from Uber and Lyft.

The law originally secured a 7-5 majority approval from Council members in August, but was vetoed by Mayor Frey later that month. Mayor Frey said he made the decision because of the uncertainty over the possible consequences.

“What ultimately played a role in my decision was recognizing that we didn’t have all the data and information that we needed to understand the consequences of the decision we’re making — I don’t want to sign something just to find out a week later that there were problems with it,” he explained in a letter to council members.

The failed vote is a win for ride hailing companies which have been lobbying several states and cities to discourage new laws that support driver unions, higher driver pay, change in their status from independent contractors to employees, and new protections for gig workers.