Uber and Lyft have declared their plans to suspend service in Minneapolis amid an ongoing dispute with city officials over minimum wage requirements for drivers. The clash between the transportation giants and city leadership has been a contentious issue for the past year.

Last August, the Minneapolis city council passed a bill advocating for a minimum wage of $1.40 per mile and $0.51 per minute for Uber and Lyft drivers. These rates were calculated to ensure drivers would earn at least the $15.57 minimum wage after expenses. Notably, drivers only receive payment when they have passengers, making hourly wage calculations irrelevant. Presently, the median hourly wage for drivers in Minneapolis is $13.63 after expenses, according to state data.

However, Minneapolis Mayor Jacob Frey vetoed the initial minimum wage bill, claiming that it required further refinement. In response, council members introduced another measure focused on driver pay, which recently passed by a vote of 9-4. Despite the mayor's intention to veto the new measure, the city council ultimately voted to override the veto.

Council Member Robin Wonsley, the lead author on the policy, celebrated the decision, describing it as a triumph of "regular working-class people" against the corporate giants and their political allies.

In response to the city's actions, Lyft spokesperson CJ Macklin criticized the legislation, calling it "deeply flawed" and hurriedly pushed through the system. Meanwhile, Uber's senior director of public affairs, Josh Gold, expressed disappointment over the council's disregard for data and accused them of effectively forcing Uber out of the Twin Cities.

This battle in Minneapolis is part of a larger pattern, as Uber and Lyft have consistently fought against minimum wage laws and driver protection bills in various cities across the United States. In California, they even contributed over $200 million to support a ballot measure that prevents drivers from being classified as employees.

The ongoing dispute raises questions about the treatment of drivers as independent contractors, leaving them responsible for their own expenses and devoid of employee benefits such as health insurance and sick pay.

Both Uber and Lyft have previously threatened to suspend operations in New York and California in response to similar conflicts. The companies had even threatened to cease services in greater Minnesota after a separate minimum wage bill was passed. However, that bill was eventually vetoed by Governor Tim Waltz.

Labor advocates and Minneapolis ride-hail drivers argue that they should receive fair wages and the same rights as other workers. Veena Dubal, a labor law professor at the University of California, Irvine School of Law, commended the city council's efforts to ensure fair labor and competition, suggesting that if Uber and Lyft do withdraw, other alternatives that prioritize both consumer convenience and fair wages will emerge.

With Uber and Lyft's suspension of service slated for May 1, the future of ride-hailing in Minneapolis remains uncertain.