Lyft calls the City Council ordinance 'deeply flawed' and says it will pull out by May 1, when the ordinance takes effect.
Lyft and Uber said they will cease operations in Minneapolis after the City 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.
“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.” The City Council first passed the measure last week in a 9-4 vote despite Mayor Jacob Frey’s promise to veto it. The measure requires ride-hailing companies to pay drivers at least $1.40 per mile and $0.51 per minute for the time spent transporting a rider — or $5 per ride, whichever is greater — excluding tips. In the event of a multi-city trip, that only applies to the portion that takes place within Minneapolis.
“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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