Uber and Lyft to Exit Minneapolis Over New Minimum Wage Ordinance

The companies' decision follows the city council's vote to mandate a minimum pay rate for drivers, sparking debate among stakeholders.

Uber and Lyft announced they will halt operations in Minneapolis starting May 1, in response to a new city ordinance mandating minimum wages for app-based drivers.
The Minneapolis City Council's ordinance requires ride-hailing companies to pay drivers at least $1.40 per mile and $0.51 per minute, or $5 per ride, whichever is greater.
The decision comes after the council voted 10 to 3 to override a mayoral veto of the measure, citing the need to ensure fair wages for drivers.
Drivers and passengers have mixed reactions, with some hoping the companies' departure is a bluff and others criticizing the potential impact on convenience and affordability.
Statewide legislation has been proposed to counteract the city ordinance, with both companies indicating a willingness to work towards a compromise that balances driver wages with service sustainability.