The Minneapolis City Council voted to override Mayor Jacob Frey’s veto, effectively increasing the pay floor for rideshare drivers, despite threats from Uber and Lyft that would leave the region as a result.
In a 10-3 vote, the city council reversed the mayor’s veto and increased pay for rideshare drivers.
Uber and Lyft say they are following through on their threat and leaving town on May 1, when the ordinance goes into effect. Uber said the Twin Cities will be the only metro area in the United States without Uber services.
“We are disappointed the Council chose to ignore data and kick Uber out of the Twin Cities, putting 10,000 people out of work and leaving many stranded,” Uber said in a statement in response. “But we know that by working together with all stakeholders — drivers, riders and state leaders — we can achieve comprehensive statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps rideshare affordable.”
“This ordinance makes our operations unsustainable, and as a result, we are shutting down operations in Minneapolis when the law takes effect on May 1,” Lyft said in a statement. “We will continue to advocate for a statewide solution in Minnesota that balances the needs of riders and drivers and hope to return to Minneapolis as soon as possible.”
The ordinance affects the entire metropolitan area, including Minneapolis-St. Paul International Airport. Uber said they will no longer be able to operate service to the airport.
“Drivers are human beings with families, and they deserve dignified minimum wages like all other workers,” City Councilman Jamal Osman said on X. “Today’s vote showed Uber, Lyft, and the Mayor that the Minneapolis City Council will not allow the East African community, or any community, to be exploited for cheap labor.”
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“Everyone wants to see Uber and Lyft drivers get paid more, but getting a raise doesn’t do a whole lot of good if you lose your job entirely,” Mayor Frey said. He said he is working toward finding a way to find a solution with the state government.
A statewide report found drivers in the Twin Cities earned $14.48 an hour compared to Minneapolis’s minimum wage of $15.27. The new ordinance requires drivers to be paid more than minimum wage, at $1.40 per mile and 51 cents per minute.
