Uber Technologies and Lyft announced their cessation of operations in Minneapolis starting May 1st, following the city council’s decision to implement a minimum wage for rideshare drivers.
The council’s 10-3 vote, overriding Mayor Jacob Frey’s veto, mandates a pay rate of $15.57 per hour for rideshare drivers.
Expressing disappointment, Uber remarked, “We are disappointed the Council chose to ignore the data and kick Uber out of the Twin Cities, putting 10,000 people out of work and leaving many stranded.”
In response, Lyft criticized the bill as “deeply-flawed” but expressed hopes to resume operations in Minneapolis while advocating for a statewide solution in Minnesota.
This development follows a protest staged by rideshare and delivery drivers on Valentine’s Day, highlighting concerns over fair pay and working conditions.
Furthermore, in November, the New York Attorney General’s office announced a settlement where Uber agreed to pay $290 million and Lyft $38 million to address wage theft allegations, marking it as the largest settlement in the office’s history.
A recent study by the Minnesota Department of Labor and Industry suggested that the companies are unlikely to significantly raise prices or reduce consumer demand and commissions, despite concerns raised about potential outcomes.
