Uber, Lyft plan to leave Minneapolis on May 1


It may be harder to get through Minneapolis as Lyft and Uber say they're about to exit the city.

On Thursday, the Minneapolis City Council voted for the increase Driver wages are at the local minimum wage for the city, which is $15.57 an hour.

But that was too much for ride-sharing companies, which are now threatening to leave the city because of the new minimum wage implementation that will force them to pay drivers a flat fee.

The decision comes after the City Council voted 10 to 3 to override the mayor's veto to enact an ordinance to raise wages for drivers in the city.

“This must be done in a fair way that keeps the service affordable for riders,” Lyft said in a statement STATEMENT. “This ordinance makes our operations unsustainable, and as a result, we are closing operations in Minneapolis when the law goes into effect on May 1.”

Connected: Lyft becomes the first rideshare company to implement minimum payment for drivers

Uber released a similar statement provided to a local outlet Fox 9.

“We are disappointed that Council chose to ignore the data and kick Uber out of the Twin Cities, putting 10,000 people out of work and leaving many stranded,” the company said. “But we know that by working together with all stakeholders — drivers, truckers and state leaders — we can achieve comprehensive statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps the sharing of affordable travel.”

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Last monthLyft became the first ride-sharing app to implement minimum payment for drivers by guaranteeing that drivers would take home a minimum of 70% of what drivers pay, regardless of outside fees.

“We think it's going to hopefully get more drivers driving for Lyft, but it's also going to make the whole sector stronger,” said Lyft CEO David Risher. Reuters in that time. “We've got more drivers now than we've had, I think, since the middle of 2019. It's strong and I'm telling you, it's getting stronger.”

If Uber leaves Minneapolis, it will make the city the only metro area in the US without Uber in place.

Uber it was upstairs 140% year over year according to news reports as of Friday morning. Lyft it was upstairs over 93% for the same period at the same time.



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