Governor Walz Vetos Rideshare Bill After Uber Threatens To Cut Service

(KNSI) – Minnesota Governor Tim Walz used his veto power for the first time on Thursday to reject a bill on rideshare services such as Uber and Lyft.

The bill guarantees a minimum wage for rideshare drivers to pay a $5 minimum fee per pickup plus $1.45 per mile and $0.34 per minute in the seven-county Twin Cities Metro. In greater Minnesota, drivers would get $1.25 per mile and $0.34 per minute. The minimum rates would increase with inflation. Under those rates, a driver would pay roughly $40 for a 10-mile, 15-minute trip between Minneapolis and St. Paul.

Drivers would have also been entitled to 80% of cancellation fees if they have already departed to pick up a rider, as well as $1.25 per mile.

Uber threatened to pull or reduce service in much of the state starting August 1st if the legislation became law.

Rideshare drivers rallied at the Capitol in support of the bill before word of the veto came out.

Governor Walz also issued an executive order commissioning a study and convening a working group of drivers, riders, rideshare companies, members of the disability community, and labor to issue recommendations for rideshare legislation next year. The executive order also requires the Department of Labor and Industry to commission a study to obtain and analyze data on the working conditions of rideshare drivers in Minnesota and how potential changes may impact rider access and cost.

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