Minnesota Uber/Lyft Drivers Association (MULDA)

Background

The Minnesota Uber/Lyft Drivers Association (MULDA) was formed in the summer of 2022 with an organizing campaign among rideshare drivers at the Minneapolis airport over concerns that driver earnings were lower than the local minimum wage in Minneapolis. The initial organizing led to the formation of a drivers committee that selected Eid Ali as its leader. MULDA was later incorporated as a nonprofit and started collecting “membership” fees of $200 from drivers. Within a month it was estimated that “MULDA had collected more than $60,000 from drivers who wanted to back the organization’s efforts to pass legislation to increase their pay.” ²

Legislation

In 2023, the Minnesota Uber/Lyft Drivers Association (MULDA) was part of advocacy efforts led by Twin Cities-based rideshare drivers to pass an ordinance in the city council requiring an increase in guaranteed driver earnings. However, Minneapolis Mayor Jacob Frey (D) vetoed the legislation over concerns it would lead to rideshare companies leaving the city. ³

In 2024, the council adopted the same ordinance and Frey vetoed it again, however, the council voted to override the veto. In response, Uber and Lyft announced plans to stop operating in Minneapolis in July 2024. ^{3 4}

During the 2024 state legislative session in Minnesota, lawmakers passed legislation that was signed by Governor Tim Walz (D), setting a slightly lower floor for driver earnings than the Minneapolis ordinance. In response to the state law, Uber and Lyft announced that they would remain in operation in Minneapolis. ^{5 4}

The new state law also required rideshare companies to “contract with a non-profit organization to help drivers appeal deactivations, educate drivers on their rights and provide technical assistance with using the apps.” Local media argued the provision seemed “tailored to describe the Minnesota Uber/Lyft Drivers Association.” Republicans criticized that provision in the legislation, “saying it could lead to fraud and graft.” ⁵

Controversies

Beginning in 2023, members of the Minnesota Uber/Lyft Drivers Association (MULDA) argued that MULDA “failed to negotiate with Uber and Lyft or tell drivers about a deal that could have won the governor’s support and brought them bigger paychecks by now.” The issue led to the creation of other advocacy groups including the Uber & Lyft Drivers Community Alliance (ULDCA) and the Minnesota Rideshare Drivers Association (MNRDA). ¹

In 2024, six rideshare drivers sued MULDA alleging that its president Eid Ali engaged in fraud and had board members removed when he was asked to share financial information about the organization. They further claimed that Ali incorporated MULDA into a nonprofit group and started collecting “membership” fees of $200 from drivers, but later incorporated two other nonprofits, “MULDA-RC” and “MULDA,” without their knowledge. ²