Uber, Lyft to stop services in Minneapolis after city council passes wage requirement for rideshare companies

The city ordinance is scheduled to go into effect on May 1.


Minneapolis City Council recently voted to enforce a wage requirement for ridesharing companies like Uber and Lyft within city limits, a move that has prompted both companies to announce their plans to cease operations in the city once the ordinance takes effect on May 1,  

According to the Associated Press, under the new ordinance, rideshare companies are mandated to pay drivers a minimum rate, which was set at either $1.40 per mile and $0.51 per minute or $5 per ride, whichever amount is greater. This wage requirement applies to all transportation services provided within the city of Minneapolis. 

The ordinance was intended to ensure that rideshare drivers are being compensated at the same rate as the city’s hourly minimum wage, which is currently set at $15.57 per hour. Jamal Osman, the City Councilman who co-authored the ordinance, emphasized the importance of this, while also highlighting how a large number of drivers are immigrants from Africa. 

“Drivers are human beings with families, and they deserve dignified minimum wages like all other workers... the Minneapolis City Council will not allow the East African community, or any community, to be exploited for cheap labor.” 

However, in response to the artificial increase in labor costs resulting from the ordinance, rideshare giants Uber and Lyft have threatened to suspend their services in Minneapolis. An Uber spokesperson confirmed the company’s intentions to discontinue its operations in the city once the ordinance is implemented on May 1. 

The move echoes a similar action taken by both companies in Austin, Texas when the city proposed fingerprint-based background checks for drivers. Subsequently, the Texas state legislature intervened, overriding the city’s measure, which led to Uber and Lyft resuming their services in Austin. 

Sign in to comment


Powered by The Post Millennial CMS™ Comments

Join and support independent free thinkers!

We’re independent and can’t be cancelled. The establishment media is increasingly dedicated to divisive cancel culture, corporate wokeism, and political correctness, all while covering up corruption from the corridors of power. The need for fact-based journalism and thoughtful analysis has never been greater. When you support The Post Millennial, you support freedom of the press at a time when it's under direct attack. Join the ranks of independent, free thinkers by supporting us today for as little as $1.

Support The Post Millennial

Remind me next month

To find out what personal data we collect and how we use it, please visit our Privacy Policy

By signing up you agree to our Terms of Use and Privacy Policy
© 2024 The Post Millennial, Privacy Policy | Do Not Sell My Personal Information