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Finding a ride come May 1 will take immense patience if Uber and Lyft pull out of Minneapolis

Dee DePass and Burl Gilyard, Star Tribune on

Published in Business News

Former cab company owner Hussein Taha in Fridley, Minnesota, wants to restart the Blue Taxi he ran in Minneapolis before the arrival of Uber, but slowly — with only five cars to start. Initial fees to license the company and cars would be over $3,500, and that doesn't count the fees for drivers.

Those wanting a taxi driver license in Minneapolis must pay a $90 fee and have a valid Minnesota or Wisconsin driver's license, no felony convictions in the past five years and the ability to read, write and speak English, said Amy Lingo, district supervisor of business licensing for the city. Background checks take time to complete.

Given the cost, Taha said he won't budge until he's absolutely certain Uber and Lyft leave the marketplace. Otherwise, he said, "The competition will be too tough. Their prices are too low."

Uber has taken steps toward exiting the market, sending letters to drivers and announcing it would close its service center in less than a month. Lyft also has informed drivers about the Minneapolis exit.

The two companies said a measure passed by the Minneapolis City Council setting minimum pay for drivers would make it unprofitable to operate. While Mayor Jacob Frey vetoed the bill, the council overrode it last week.

Now there's new pressure to consider from Gov. Tim Walz, state legislators and others who say many low-income people and those with disabilities depend on the rideshare services. Some legislators are proposing statewide remedies.

 

The issue came to a head as more drivers complained they could not make a living with the formulas used by Uber and Lyft. Driver groups lobbied the council to pass a minimum wage.

Now many of the drivers have lit up the phones at existing licensed taxi companies asking for a job.

"We have five to 10 Uber and Lyft drivers come to our facility a day" asking for job, said Steve Pint, CEO of Transportation Plus Inc. (T-Plus), a New Hope-based contract provider that books rides via an iHail app.

With 500 cars and vans and 550 drivers, T-Plus is the largest local ride service. With $50 million in annual gross revenue, it gives 3,500 rides a day, mostly to health insurance company patients, students and Metro Mobility riders.

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