Lyft, Uber To End Operations In Minneapolis Due to Wage Law

Lyft and Uber will cease operations in Minneapolis on May 1 after the city council overrode the mayor’s veto of a minimum wage for rideshare drivers.

Lyft criticized the bill as "deeply flawed," stating that the ordinance renders its operations unsustainable and called for a minimum earning standard for drivers to be implemented in a way that maintains affordability for riders. I Photo: Ivan Radic Flickr

The city council voted 10-3 in favor of the override, allowing rideshare drivers to be paid the local minimum wage of $15.57 an hour, reported Jordan Valinsky for CNN.

In a statement, Lyft criticized the bill as "deeply flawed," stating that the ordinance renders its operations unsustainable and called for a minimum earning standard for drivers to be implemented in a way that maintains affordability for riders.

Uber expressed disappointment with the council's decision, asserting that it disregarded data and effectively forced Uber out of the Twin Cities, resulting in job losses for 10,000 people and leaving many stranded.

Mayor Jacob Frey, a Democrat, voiced support for a minimum wage for rideshare drivers but opposed the ordinance due to its failure to account for a Minnesota state study analyzing appropriate driver compensation.

Frey highlighted concerns about the ordinance's potential impact, emphasizing the significant regional repercussions anticipated as a result of Uber and Lyft's withdrawal from Minneapolis.

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