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Uber leaving Minneapolis: Council debates fix
Work is underway at the Minneapolis City Council to change an ordinance that gives a pay raise to ride-hailing app drivers, but has Uber and Lyft threatening to leave the city by May.
MINNEAPOLIS (FOX 9) - With Uber and Lyft set to end service in Minneapolis once a new ordinance takes effect, six apps are looking to move in.
Last month, Uber and Lyft said they would stop service in Minneapolis starting May 1, after the city council approved a new ordinance giving a pay raise to drivers.
The issue: The city says drivers for the ride-hailing apps weren't always making minimum wage. A study conducted by the state released last month confirmed that some drivers make below Minneapolis' $15.57 minimum wage once expenses are accounted for. However, FOX 9 heard from at least one driver who said it's not difficult to make well above minimum wage if you do things right.
On Monday, one month ahead of the withdrawal date, Council Member Robin Wonsley said six companies were looking to fill the gap.
Wonsley says those companies include:
- Wridz (pronounced "rides"): A ride-hailing company that lists 18 metro markets where it operates currently, mostly focused in Texas where it's based. Drivers pay a monthly membership fee to Wridz but keep full fares.
- Joiryde: North Carolina-based company that offers rides using only Tesla vehicles.
- HICH: Not to be confused with another ride-hailing company "Hitch" – HICH Minnesota is a local co-op startup.
- MOOV: Another local startup. The founders launched a GoFundMe last week that has raised only about $120 so far.
- MyWeels: A St. Paul-based startup.
- Ride Co-op: A coalition of Minneapolis ride-hailing app drivers are looking to move forward with their own co-op app. They announced the new company last week.
It's unclear how ready any of these companies are to move in and fully replace Uber and Lyft in Minneapolis. As of late last week, the City of Minneapolis said only two companies had applied for licenses to operate in Minneapolis. However, it's not clear which two companies.
If granted, it's also not clear how quickly the companies would be able to ramp up coverage in the Twin Cities. Or if anyone is ready to launch by May 1.
At the same time, city leaders in Minneapolis are considering tweaks to the bill that could keep Uber and Lyft in Minneapolis. Those tweaks are expected to be discussed and voted on during council meetings in April.
While Lyft is only pulling out of Minneapolis, Uber plans to end service in the entire Twin Cities metro.