The Minneapolis City Council voted Thursday to approve pay raises for Uber and Lyft drivers. Here is a look at the issues and possible impacts now that the ordinance has passed.

Pay

The measure set minimum pay for drivers at $1.40 per mile plus 51 cents a minute while a passenger is in the vehicle on trips within Minneapolis' borders. Drivers also would be guaranteed 80% of fees collected when trips are canceled.

The measure makes Minneapolis Uber and Lyft drivers some of the highest-paid in the United States.

Mayor Jacob Frey has introduced a counterproposal that would set minimum pay at $1.20 per mile and 35 cents a minute. He also has vowed to veto the legislation.

Both Uber and Lyft have already instituted a $5 minimum fee per trip.

Rider impact

Uber and Lyft officials say the higher driver pay will lead to higher fees for riders. The companies say some trip fees could double and that rideshare would become a luxury for those who can afford it. The measure also would have a negative impact on lower-income earners, company officials said.

Organizations such as ConnectAbility of Minnesota say higher trip fees would negatively impact people with disabilities and leave them without an affordable transportation option.

"This is more multi-dimensional than a one-side vote about driver wages," said Sheri Wegner, executive director for the nonprofit serving people with cognitive and mental disabilities in 65 counties across the state.

Driver impact

While drivers could make a higher wage, Lyft and Uber executives say a downturn in ridership could undercut earnings by reducing ride volume.

"This purportedly pro-driver ordinance is actually anti-working family," Lyft Chief Operating Officer Jeremy Bird wrote in a letter sent this week to City Council President Elliot Payne.

Not all drivers are on board. More than 300 drivers have signed an online petition urging the City Council to vote no.

Decision

Uber and Lyft have said they would likely cut back or cease operations in Minneapolis if the city enacts an ordinance governing driver pay. More recently, they have said they would be forced to cease operations in Minneapolis, and possibly the entire state, on May 1 if the ordinance is enacted. Frey has said he would veto the measure, but the City Council appears to have the votes to override the mayor's veto.