Minneapolis City Council President Elliot Payne says rideshare drivers are the big winners after the state legislature passed a plan that included pay raises and increased insurance protections.
Payne told WCCO's Morning News with Vineeta Sawkar that the work done in Minneapolis paved the way for the agreement that came together in St. Paul.
"We have been fighting for this for over a year," Payne says. "It had been vetoed by the governor. It's been vetoed by the mayor. We had to override the mayor's veto, but we really set the tone of the conversation at the State Capitol this year and that was really what it took to get it done."
The deal keeps those platforms operating in the state. Payne says there's no doubt that it will cost more to use rideshare services going forward.
"We saw rates going up pretty consistently prior to this policy," Payne explained. "So I think that one of the things that writers are going to have to adjust to is the reality that these companies, to be profitable, needed to be raising prices anyway."
Drivers will receive a pay raise of 20%, and increased insurance protections which is lower than the original ordinance passed by the City Council. Uber and Lyft had threatened to leave Minnesota on May 1, later extended to July 1, if a workable compromise wasn't reached.
Uber has already publicly signed off on the bill and will continue operating in Minnesota.
“We applaud the tens of thousands of riders and drivers who sent close to 100,000 emails to legislators - your voices were heard," said a statement from Uber. "While the coming price increases may hurt riders and drivers alike, we will be able to continue to operate across the State under the compromise brokered by the Governor.”
The bill preempts municipal leaders from setting their own local wage standards, which has drawn the ire of some Minneapolis City Council members.
“While I am proud that my state leaders have passed one of the strongest bills in the country, I am deeply disappointed that our Governor acquiesced to Uber and Lyft’s demand of preemption, stripping Minneapolis of our regulatory authority," explained Minneapolis City Councilmember Robin Wonsley. "This action has set a dangerous precedent and will be weaponized to dissuade other cities, unions, and organizations from championing necessary labor protections in the near future.”