Lfyt and Uber to Stop Operating in Minneapolis After City Council Demands Increase in Wages for Drivers
Lyft and Uber have unanimously decided to halt operations in Minneapolis following a new city ordinance that increases wages for app-based drivers, which comes in the wake of a longtime clash between gig economy workers and tech giants.
The city’s council vote overrode a mayoral veto of the measure wherein ride-sharing companies will have to pay drivers “the equivalent of the local minimum wage of $15.57 an hour.” This isn’t the first time members of the city council have sought a driver pay raise nor is the problem exclusive to the city or the state.
However, both Lyft and Uber said that they will terminate operations in Minneapolis effective May 1, 2024.
Lyft called the ordinance “deeply flawed. They added, “this ordinance makes our operations unsustainable.”
Josh Gold, Uber’s senior director of public affairs, said in a statement that this will result in thousands of people losing their jobs and will leave many riders stranded.
“We are disappointed the Council chose to ignore the data and kick Uber out of the Twin Cities,” Gold said.
A driver who has been working for both companies said “Lyft and Uber need to listen to the drivers” but he hopes “their talk of leaving is a bluff.”
Drivers are currently struggling to make ends meet in the wake of rising expenses alongside paying for their cars and maintenance.
“To put food on the table for our families,” he said. “That’s why we’re looking for a raise.”
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