Uber and Lyft up pressure campaign as Minneapolis City Council moves ahead with driver pay raise

Uber and Lyft on Monday upped their pressure campaigns — and threats to leave the city — as the Minneapolis City Council prepared to forge ahead with a plan to raise pay for drivers.

On Monday afternoon, the council, meeting as a committee, ushered the plan along en route to a likely final approval Thursday.

Lyft sent emails to drivers and riders vowing to “stop operating within the city on April 1″ if the current proposal ultimately takes effect. “Tell your local officials to vote against this proposed ordinance and keep rideshare accessible and affordable,” the emails read.

Uber, which also told drivers it would leave April 1 if the ordinance takes effect, took out a banner ad that greeted visitors to the homepage of the Star Tribune on Monday morning, reading: “Tell the Minneapolis City Council: Stand with working families. Protect ridesharing in the Twin Cities.”

The ride-hailing companies’ fears stem from a plan barreling through the City Council to increase driver minimum pay beyond a level the companies are comfortable with.

The plan would pay drivers a minimum of $1.40 per mile and 51 cents per minute while transporting riders on any trip within the city limits, among other guarantees.

Mayor Jacob Frey vetoed a similar plan last year, but the make-up of the council changed in November’s election. It’s possible council members could override Frey’s veto this year — which appears likely if the plan doesn’t change significantly.

State lawmakers approved a statewide pay hike last year — also amid Uber and Lyft opposition — and Gov. Tim Walz vetoed it. He established a commission, but that group, which included both drivers and the companies, failed to reach a consensus on a specific pay raise.

The push for pay raises has stemmed largely from the travails of drivers, who have organized to lobby elected officials and spread their message: The companies have gradually reduced their pay in recent years as they’ve gained dominance over taxi companies from their disruptive entrance into the region more than a decade ago.

The companies acknowledge they’ve cut the share of fares that go to drivers but have said that’s due to the rising cost of insurance.