Minneapolis Mayor Jacob Frey vetoed a city ordinance that would increase wages for rideshare drivers in the city.
His veto comes after both Uber and Lyft threatened to pull out of Minneapolis if the ordinance was passed. The Mayor announced that he reached a deal with Uber that pays drivers at least $5 per trip. Lyft has not said if they reached an agreement with the mayor’s office, but have said they no longer have plans to withdraw services from the city.
Meanwhile, an Uber spokesperson said “it remains our goal to pass comprehensive, statewide legislation that will raise rates for drivers without sacrificing ridership."
The mayor’s move is strikingly similar to Minnesota Governor Tim Walz, who also vetoed a bill that would improve pay for drivers after Uber and Lyft threatened to pull out of the state. Both measures were vetoed after passing their respective political bodies.
Lead author of the measure Councilmember Robin Wonsley said the veto was an “inexcusable betrayal of Minneapolis workers,” and that Mayor Frey was “ready to abandon any commitment to living wages or workers’ rights under the pressure of lobbying by multibillion-dollar out-of-state corporations.”
The vetoed ordinance, which the Minneapolis City Council passed by a vote of 7-5, would also have guaranteed drivers $5 per trip. In addition, It would have guaranteed that riders and drivers both get receipts within 24 hours of a completed trip.
President of the Minneapolis Uber and Lyft Driver’s Association (MULDA) Eid Ali said he was “devastated” by the veto, and will turn to community organizing to obtain better conditions for rideshare drivers.