Lyft and Uber say they will cease operations in Minneapolis after the city’s council voted Thursday to override a mayoral veto and require ride-hailing services to increase driver wages to the equivalent of the local hourly minimum wage of $15.57.
BusinessRide-hailing drivers celebrate in Minneapolis, Thursday, March 7, 2024, immediately after Minneapolis City Council members voted to pass a measure that would increase wages to drivers of ride-hailing companies, including Uber and Lyft, to an equivalent of more than $15 an hour. Opponents say this may increase costs to customers and increase fears that Uber and Lyft will follow through on their threats to leave the area altogether.
Both companies promised to push for statewide legislation that would counter the Minneapolis ordinance, and state House Republicans proposed a bill Thursday that would preempt local regulations of ride-hailing services. “Drivers are human beings with families, and they deserve dignified minimum wages like all other workers,” Jamal Osman, a council member who co-authored the policy, said in a statement.
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