"Uber and Lyft say they’re done in Minneapolis because $15.57 minimum wage would be ‘unsustainable’", March 15 2024

Lyft and Uber said they will cease operations in Minneapolis after the city’s council voted Thursday to override a mayoral veto and require that ride-hailing services increase driver wages to the equivalent of the local minimum wage of $15.57 an hour.

Lyft called the ordinance “deeply flawed,” saying in a statement that it supports a minimum earning standard for drivers but not the one passed by the council.

“It should be done in an honest way that keeps the service affordable for riders,” Lyft said. “This ordinance makes our operations unsustainable, and as a result, we are shutting down operations in Minneapolis when the law takes effect on May 1.”

Uber did not immediately respond to a request for comment, but news outlets reported that it issued a similar statement saying it would also stop service that day.

Both companies promised to push for statewide legislation that would counter the Minneapolis ordinance, and state House Republicans proposed a bill Thursday that would preempt local regulations of ride-hailing services.

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“Drivers are human beings with families, and they deserve dignified minimum wages like all other workers,” Jamal Osman, a council member who co-authored the policy, said in a statement.

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Seattle and New York City have passed similar policies in recent years that increase wages for ride-hailing drivers, and Uber and Lyft still operate in those cities.