The Minneapolis City Council-Uber-Lyft Saga Continues

The Minneapolis City Council’s mandate to increase wages for ride-hailing drivers has not only led to the departure of Uber and Lyft but has also highlighted broader concerns about the city's business policies. Despite Mayor Jacob Frey's veto, the council pushed forward with a requirement that ride-hailing services pay drivers the local minimum wage of $15.57 per hour.

To “make up” for their mistakes, the Minnesota Council Committee announced plans to issue $150,000 to attract "new and emerging rideshare companies." This decision completely ignores the fact that they are driving established companies like Uber and Lyft out of the city. Democrats are attacking businesses they don't like and promoting policies that are not business-friendly. Why do Democrats hate fair and free markets?

This is not an isolated incident. Minnesota joins other Democrat strongholds in their attempts to eliminate ride-share apps from their states. In California, voters approved Proposition 22 in 2020, exempting firms like Uber and Lyft from having to classify their gig workers as employees rather than independent contractors. However, a California Superior Court judge invalidated Proposition 22 in August 2021, deeming it "unconstitutional and unenforceable." Last June, the California Supreme Court heard a challenge to Proposition 22, with hopes of overturning an appeals court ruling that upheld it as state law.

Similarly, Austin, Texas, faced a similar situation in 2015 when the City Council passed an ordinance requiring ride-share companies like Uber and Lyft to be regulated like taxis. Governor Abbott signed a measure in May 2017 that established a statewide regulatory framework for ride-hailing companies, overriding local measures that prompted businesses like Uber and Lyft to leave Austin and other cities.

The Minneapolis City Council's decision to prioritize emerging ride-share companies over established ones like Uber and Lyft demonstrates a concerning trend of favoritism and anti-business policies. It not only hurts existing businesses but also sends a chilling message to potential investors and entrepreneurs.