Lyft, Uber to Leave Minneapolis After City Council OKs Minimum Wage Hike

Ride-share apps Lyft and Uber have said they will cut off service in Minneapolis by May 1, the same day that a new law passed Thursday is set to take effect requiring the companies to increase driver wages to meet the local minimum wage of $15 an hour. In a statement to several news outlets, Lyft said that it was not opposed to an increase in wages for drivers—but that the ordinance was “deeply flawed” and makes the company’s “operations unsustainable.” It continued: “As a result, we are shutting down operations in Minneapolis when the law takes effect on May 1.” The bill passed the Minneapolis City Council last week, but was immediately vetoed by Mayor Jacob Frey. Thursday’s vote was to override the mayor’s veto, something that Jamal Osman, one of the members who co-authored the policy, said was necessary to protect drivers and give them a “dignified” minimum wage. “Today’s vote showed Uber, Lyft, and the Mayor that the Minneapolis City Council will not allow the East African community, or any community, to be exploited for cheap labor,” Osman added. “The Council chooses workers over corporate greed.”