
MINNEAPOLIS, Minn. (KFGO/WCCO) – As the May 1 deadline for Lyft and Uber’s departure in Minneapolis approaches, concern is growing among business owners about how it will affect employees.
The two rideshare giants continue to stand their ground on their pledge leave the Twin Cities after the City of Minneapolis passed a rideshare ordinance that will increase pay for Uber and Lyft drivers in the city. The change guarantees drivers get 80% of canceled rides and earn no less than $5 per ride.
The move was opposed by Mayor Jacob Frey but the City Council overrode his veto. Governor Tim Walz has also criticized the ordinance saying the state study on rideshare should have been followed instead. The state legislature is working on their own bill that would work with the two rideshare companies to standardize pay statewide.
Pizza Luce CEO JJ Haywood says if they do end up leaving the city, she’s worried about how her employees will continue to make it to work.
“Public transportation during the pandemic really shrank, and I think the number of our folks using Uber and Lyft really rose dramatically,” Haywood explained.
When it comes to new rideshare company like MOOV and others looking to take over, Haywood says she skeptical they will be able to meet the demand.
“It would be difficult to scale up quickly, and in that gap will people change their habits which might include deciding not to visit,” she adds.
City officials say they are willing to give $150,000 to new Uber and Lyft alternatives.
However, Haywood says she feels that voices like hers don’t matter much to the City Council or state legislators.
“I don’t necessarily feel like there was any kind of broader outreach to understand the impact of such a decision,” Haywood told WCCO Radio.
She says the change is especially a concern for anyone operating with a liquor license as well.
“We want to make sure there’s lots of options for people who shouldn’t be driving, to not be driving. And easy options,” she said.
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