Lyft and Uber To Cease Operations In Minneapolis After New Minimum Wage Law

The city council of Minneapolis on Thursday voted 10-3 to allow rideshare drivers to be paid the local minimum wage of $15.57 an hour, overriding the mayor's veto of the bill. As a result, Lyft and Uber said they will cease operations in the city. From a report: Lyft said in a statement the bill was 'deeply flawed' and that the ordinance makes its 'operations unsustainable.' 'We support a minimum earning standard for drivers, but it should be done in an honest way that keeps the service affordable for riders,' said a Lyft spokesperson. Uber said in a statement obtained by CNN that it's '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.'

The ordinance mandates rideshare drivers make at least $1.40 per mile and $0.51 per minute within Minneapolis. However, the analysis Frey referred to showed lower numbers -- $0.89 per mile and $0.49 per minute -- to make minimum wage. The mayor is imploring local politicians to come up with a solution before May 1. The rideshare services say that user prices would double if they stayed in the city.

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