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Over the years, there's been quite a bit of controversy surrounding the compensation that rideshare drivers receive from companies like Uber and Lyft. Both businesses have worked to combat this. Just last month, Lyft announced various pay increases and other incentives to attract more motorists to the platform.

Some rideshare drivers feel it's not enough. Many accuse both Uber and Lyft of gradually reducing their wages by taking greater amounts of their earnings over time.

In response to this, Minneapolis rolled out an initiative, mandating salary minimums for drivers. Under the decree approved by the Minneapolis City Council, Lyft and Uber must each pay drivers no less than $1.40 for each mile, $0.51 cents for each minute of driving, and $5 for each ride.

Rideshare drivers throughout the community largely supported this endeavor. Unfortunately for them, it appears to have backfired big time.

Why Uber and Lyft will leave the Minneapolis area

Starting on Wednesday, May 1, both rideshare giants will stop operating in Minneapolis, owing to the city council's new ordinance. It's worth noting that Mayor Jacob Frey initially vetoed the initiative, only for the city council to override his veto.

Since then, Uber and Lyft have both spoken out. Uber said this base pay decree ignores data, leaves thousands of people without jobs, and reduces transportation access in the community.

Lyft had similar thoughts.

In a public statement, the rideshare company likewise confirmed it's leaving Minneapolis, stating the new ordinance would make transportation unaffordable for Lyft riders. The platform then declared that because of the city council, Lyft drivers in the community who relied on the app to generate income will no longer be able to do so.

Uber and Lyft's departure from the Minneapolis area will occur on the same day the city council's new ordinance goes into effect.

The departure may be permanent

Both rideshare giants have made it clear they won't be able to operate in Minneapolis so long as the city council's pay decree stands. Even after the news of Lyft and Uber's impending departures, many Minneapolis drivers who support the initiative aren't backing down.

It is their view that both companies should manage to pay drivers a "liveable wage." They've also suggested that Uber and Lyft are simply operating from a place of greed and wanting to keep more profits to further their own bottom lines.

Unfortunately for Minneapolis drivers, the pay ordinance they largely support is taking their rideshare income from wherever it stood before to a flat zero.