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https://m.startribune.com/minneapolis-city-council-overrides-frey-veto-on-uberlyft-plan/600351100/

Rideshare giants Uber and Lyft say they will leave Minneapolis May 1 after the City Council voted to enact a pay raise for drivers.

The council voted 10-3 on Thursday to override Mayor Jacob Frey's veto of the ordinance, which sets minimum pay drivers receive for rides in the city, starting May 1.

In statements soon after the vote, Uber said said it will "stop operating a transportation network in the entire metro area including the airport," and Lyft said it will be "shutting down operations in Minneapolis."

The vote was met with cheers from an organized group of drivers, and council members who support the plan declared it a victory for workers and scoffed at the ride-hailing companies' threats.

Meanwhile, a forlorn Frey said, "We've got a lot of work to do" to prepare for an Uberless reality.

Frey had pleaded with council members to lower the pay minimums to a level that would significantly boost driver pay, but still be amenable to the ride-hailing companies.

Thursday's vote means the ordinance will go into effect as-is, although the council could decide to change it before May.

The council approved the plan last week with a veto-proof majority. Frey vetoed it the next day and called Thursday's special meeting to get the override vote taken care of quickly. If he were to be overridden, he argued, it was best for that to happen as soon as possible to give the city time to prepare.

Uber and Lyft are the only licensed rideshare companies in the city, although several entities both local startup notions and existing companies have said they'd be eager to fill the void. None have formally applied for a license.

For several years, an organized group of drivers have complained that Uber and Lyft have cut the share of fares they receive, to the point where some say they can't make ends meet. Many were cab drivers before Uber entered the market a decade ago, leading to a massive shrinkage of the local taxi sector. The companies only recently started reporting profits, and critics have said their business model is dependent on exploiting drivers.

These organized drivers found allies among the more liberal members of the City Counciland state Legislature. New minimum standards were approved last year in Minneapolis and at the state Capitol, but Frey and Gov. Tim Walz vetoed them. In Minneapolis, the political make-up of the council changed in November's election.

Supporters on the council said their goal was for drivers to earn the equivalent of the city's $15.57 hourly minimum wage. However, a state-commissioned study, released a day after their vote, concluded that drivers could be paid far less than the Minneapolis plan to earn the minimum wage equivalent even with benefits like health insurance and paid time off.

Here are some numbers:

The Department of Labor and Industry study billed as the largest rideshare driver compensation study ever commissioned suggested that drivers could be paid 89 cents per mile and nearly 49 cents per minute to reach minimum wage equivalency for rides across the metro. A minimum of $1.21 per mile and 49 cents per minute for such rides would afford drivers a suite of benefits, including paid leave, health insurance and retirement savings.

By contrast, the plan approved by the City Council guarantees a floor of $1.40 per mile and 51 cents per minute. The driver of a wheelchair-accessible vehicle would get $1.81 per mile. Frey had pushed for a minimum payment of $1.20 per mile and 35 cents per minute. The approved plan includes additional provisions, including a $5 minimum payment for any ride, annual increases for drivers, and restrictions on how money can be deducted from drivers' wages.

With more than 7,000 active Uber drivers in the state, it's impossible to know where they all stand. There are clearly a range of views.

A vocal coalition of between scores and hundreds of drivers, perhaps thousands, has supported the plan approved by the council. A different group has pushed for compromise, and on Thursday morning that group called for the council to lower their minimums to $1.30 per mile and $0.35 per minute.

More than 300 Lyft drivers signed a company petition last week opposing the council's plan. Some individual drivers have testified publicly or told the Star Tribune that they're fine with the current state of affairs.