MINNEAPOLIS — You may have noticed an alert on your Lyft app this week.
The rideshare company is informing riders it would "be forced to stop operating in Minneapolis" Jan. 1 of next year if the City Council passes a rideshare ordinance Thursday and the mayor signs off on it.
The company also sent a letter to the council, warning that raising driver wages would also increase costs for riders, resulting in fewer ride requests and fewer earning opportunities for drivers. In its notice to riders, Lyft said costs would "nearly double."
The plan calls for drivers to receive at least $1.40 per mile and $0.51 per minute, or $5 — whichever is greater. The rule would only apply to the portion of the ride within the city. The ordinance would also guarantee riders and drivers get receipts within 24 hours of a completed trip detailing how much the rider paid versus what the driver received.
Lyft insists the proposal would jeopardize safety because drivers would be allowed to work for five days following a safety incident.
Ahead of the vote, the Minnesota Uber/Lyft Driver's Association shared support for the bill alongside Ward 2 Council Member Robin Wonsley, who wrote it.
On social media, she calls the notices sent to riders this week "standard scare tactics that corporations use to resist regulation."
During a council meeting last week, the Minnesota Rideshare Drivers Association called the proposal a waste of time because it resembles the one Gov. Tim Walz vetoed back in spring but promised to study further.
"This bill will serve the opposite of its intention," the group's president said.
"There's already a task force that's in place," its vice chair added.
Lyft and Uber are asking the council to wait until state task force policy recommendations are ready.
Unlike Lyft, Uber hasn't announced a specific date but is sharing a similar warning to riders that if the plan passes, it would "greatly reduce services" and "possibly shut down operations entirely."
Council president Andrea Jenkins responded to inquiry on e-mail Wednesday, saying, "I support workers rights to earn a livable wage. I urge Ridesharing companies to support workers as well, by listening to the concerns and responding accordingly."
Mayor Jacob Frey's Office referred KARE 11 to the following statement:
“Mayor Frey supports drivers being paid more. How to get there is very 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.”
On Wednesday evening, Frey sent a letter to the city council outlining what he believes should be done before an ordinance is enacted, beginning with allowing more time for deliberation.
"We need both additional data and conversations to be had to ensure the essential safety and well-being of rideshare drivers and riders alike," the statement reads, in part.
He also called for more driver protections and benefits, as well as a gift card ban.
Thursday's council meeting is set to begin at 9:30 a.m.
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