Uber, Lyft in Minneapolis: Mayor Jacob Frey vetoes rideshare ordinance

MINNEAPOLIS (FOX 9) - Minneapolis Mayor Jacob Frey vetoed the ordinance to raise the minimum wage of ride-hail drivers after Uber and Lyft warned they would leave the Twin Cities if it passed. 

The Minneapolis City Council passed the ordinance on Thursday in a 9-4 vote, which would go into effect on May 1. Council members considered delaying the vote after learning a state report on the matter was set to be released Friday, but voted against the delay, which Frey did not support. 

"The statewide report is literally going to be released tomorrow. It’s irresponsible to pass policy today when we’ll have the data tomorrow," Frey said in a statement following the vote on Thursday. 

Frey said on Friday he vetoed the ordinance, and he will likely call a special session for Thursday, March 14. However, depending on the votes, it is possible the city council could override the veto. But, Frey is hopeful that won’t happen. 

"Mayor Frey is right to veto this legislation, and we urge the council to uphold his veto at their next meeting. Otherwise, we risk no longer being able to offer our service within the city once the bill takes effect on May 1," a Lyft spokesperson said in a statement on Friday. 

Mayor Frey said on Wednesday he supports fair pay for rideshare drivers, including doubling the rate of pay for drivers, but says the current ordinance pushes things too far. Frey further pointed to the importance rideshare apps play for people with disabilities and those who can't afford a car.

Last year, a similar rideshare ordinance was passed with seven votes versus five "nays" and one absent. Frey vetoed the bill and an effort to override the veto came up short. 

You can read the full state report, which was released on Friday, here. 

"While the study is deeply flawed, it clearly recognizes that drivers are independent contractors. With the state and, most importantly, drivers agreeing that flexibility is critical, any compromise must prioritize independent contractor status. It’s also now clear that the Minneapolis minimum wage proposal is off by a whopping 60%," Uber said in a statement on Friday.