Uber And Lyft Announce Plans To Leave Democrat-Led City

Ride-hailing apps Uber and Lyft announced they plan to cease operations in Minneapolis, Minnesota, on May 1st, citing a city ordinance mandating a pay boost for drivers.

The Minneapolis City Council voted 10-3 to override Mayor Jacob Frey’s veto.

Citing City Council mandate, Lyft and Uber to exit Minneapolis on May 1 https://t.co/3EOBlbVSrQ

— John Solomon (@jsolomonReports) March 16, 2024

“We are disappointed the 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. But we know that by working together with all stakeholders – drivers, riders and state leaders – we can achieve comprehensive statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps rideshare affordable,” Uber wrote in a statement.

Lyft, Uber plan to leave Minneapolis after city council forces them to hike driver pay https://t.co/23dVTMgnUj pic.twitter.com/cGVFNU11gz

— New York Post (@nypost) March 16, 2024

FOX 9 reports:

Uber says starting May 1, they will be forced to stop operating in the entire Twin Cities metro. Lyft issued a similar statement with the same deadline to stop service in Minneapolis.

“This ordinance is deeply flawed, and the rates it sets are far higher than what the state’s study suggested. We support a minimum earning standard for drivers, but it should be done in an honest way that keeps the service affordable for riders,” the Lyft statement reads. “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. We will continue to advocate for a statewide solution in Minnesota that balances the needs of riders and drivers and hope to return to Minneapolis as soon as possible.”

The new ordinance aims at guaranteeing drivers earn minimum wage in Minneapolis. It requires ride-hailing companies to pay drivers rates equivalent to the city’s minimum wage of $15.57.

Frey also vetoed a similar ordinance passed last year. But, this time around, with two new council members, there were enough votes to override the veto.

WATCH:

Lyft and Uber are planning to leave Minneapolis because the city council is making them raise driver pay to the local minimum wage of $15.57 an hour

The measure mandates a minimum of $1.40 per mile and $0.51 per minute for each ride, or $5 per ride, whichever is higher,… pic.twitter.com/uXgLP9Y7cL

— Unlimited L’s (@unlimited_ls) March 16, 2024

Per CBS News:

It comes after the city council voted to give the drivers a raise. Under the plan, drivers would be paid $1.40 per mile and $0.51 per minute while transporting passengers and would make no less than $5 per ride. They would also keep 80% of fees for any canceled requests for service.

Many factors can determine the price of a Lyft or Uber, including supply, demand, and location. But if the only thing that will change is the “per minute and per mile” rates laid out in the Minneapolis ordinance, a trip from the airport to WCCO’s downtown offices at 7 p.m. on a Friday would increase from $36 to $46.

“I’m gonna have to figure out a different way to get to and from the airport. I’ll probably end up having to park my truck here which will be like almost triple the cost probably,” said John Shields from Minneapolis.

“You can’t be upset that prices go up. Because when a wage goes up and it’s one of those things, we really kind of should all be working together when that’s going on and not just kind of pulling out,” said Adam Capel from South Jersey.

In a statement, the Metropolitan Airport Commission said that it does “not expect impacts on rideshare operations or customers at the airport before May 1. We will continue to monitor the situation to determine any potential impacts beyond that date.”

Travelers hope a compromise can be reached before then. Despite threats in the past, Uber and Lyft have never left a city because of a minimum pay increase.

This is a Guest Post from our friends over at 100 Percent Fed Up.

View the original article here.