MINNEAPOLIS -With just one month left before Uber and Lyft threaten to leave Minneapolis and possibly the entire metro area, other ride-hailing services are rushing to fill the potential gap. One of these services, Ride Co-op, was introduced on Friday with the full support of the Minnesota Uber and Lyft Drivers Association (MULDA). “If Uber and Lyft want to leave, they’re welcome to leave because we have options now,” said Marianna Brown, VP of MULDA. “And we’re not going to be intimidated. We’re not going to be threatened by them.”
Co-op Ride is a driver-owned ride-share company that started in New York City in 2001. Originally meant as a competitor to Uber and Lyft, it shifted its focus to non-emergency medical transportation. However, in Minneapolis, they plan to offer a full passenger service and are hoping to quickly attract drivers and riders.
“We just started today, and I think so far 200 drivers have signed up, so we’re hoping that number keeps increasing in the next few days,” said Eric Forman, who helped launch Co-op Ride in New York and is organizing it here. “But we also need riders. So we’re calling on the people of Minnesota – get involved. This is going to be your company, make it happen.”
Co-op Ride is also trying to launch in Denver, Colorado. In New York City, the service takes a 15% commission from each trip, giving more to the drivers. Profits are either reinvested in the company or given as dividends to drivers. According to a state study released earlier this month, there are more than 10,000 registered Uber and Lyft drivers in Minnesota. Together, they make more than 20 million trips a year, with 95% of them in the seven-county metro area.
The City of Minneapolis says they’ve already received three permit applications from alternative rideshare services. The city has promised to expedite them, but there are other hurdles involved. The permit has a nearly $50,000 fee, and there are state requirements for liability and driver background checks. All of this is happening as the May 1 deadline approaches, which is when the city’s rideshare minimum wage ordinance takes effect and Uber and Lyft say they’ll leave the market.
In the meantime, work continues at the state capitol to craft legislation for better pay on a statewide level that Uber and Lyft can accept. Legislators seem hopeful that an agreement can be reached in time.
There are also questions about whether new services with permits in Minneapolis can offer rides throughout the metro area, or if additional and potentially costly permits in other cities would be required. But MULDA, which advocated strongly for the minimum wage ordinance, believes new services can be ready in time, if not encourage Uber and Lyft to compromise.
“MULDA is excited to welcome them to town and will cooperate in making them effective,” said Eid Ali, the organization’s president. “Only two major companies, two companies have hijacked the whole state.”