Lyft, Uber Discontinuing Service in Minneapolis After Minimum Pay Ordinance Passes

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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.