When the Minneapolis City Council announced a mandatory minimum wage for rideshare drivers that would have driven both company costs and fares beyond sustainable levels, both Uber and Lyft announced that they would be ending their service in the Twin Cities in July. The City Council backpedaled a bit a week later, but it still wasn't enough to reach a lasting resolution. This weekend, the state stepped in to settle the matter. The Governor, along with the state House and Senate struck a deal on a minimum pay rate for drivers that, while still too high, will accommodate the needs of the companies and toss some extra cash to the drivers. The new state arrangement will override the Minneapolis City Council decree in the process. As with most functional compromises, nobody is coming away happy, but both sides are at least a bit less unhappy than they were. (Star Tribune)

Legislators approved a last-minute deal to set minimum pay standards for Uber and Lyft drivers that will prevent the companies from leaving parts of the state on July 1.

The House and Senate passed the deal Sunday before a midnight deadline, sending it to Gov. Tim Walz's desk.

Uber spokesman Josh Gold said in an email, "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 agreement supersedes a recent ordinance from the Minneapolis City Council on pay standards and sets minimum rates statewide at $1.28 per mile and 31 cents per minute.