In response to a recent ordinance passed by the Minneapolis City Council to enforce a minimum wage for drivers, Uber and Lyft have issued statements threatening to withdraw their operations from the Twin Cities metro area starting May 1st.

The Minneapolis City Council voted 10-3 to override Mayor Jacob Frey's veto of the ride-hailing pay raise ordinance. This move requires ride-hailing companies to pay their drivers rates equivalent to the city's minimum wage of $15.57 per hour. The aim of the ordinance is to ensure that drivers earn a fair income while providing transportation services within the city.

Uber expressed its disappointment in the Council's decision, accusing them of disregarding the data and pushing them out of the Twin Cities. The company stated that such actions would result in job losses for approximately 10,000 people and leave many stranded. However, Uber remains hopeful that working collaboratively with all stakeholders, including drivers, riders, and state leaders, will lead to the development of comprehensive statewide legislation that guarantees fair wages for drivers, protects their independence, and maintains affordable ride-share services.

Similarly, Lyft issued a statement echoing Uber's concerns and announcing its intention to cease operations in Minneapolis when the new law takes effect on May 1st. The company argued that the ordinance sets rates far higher than what was suggested by the state's study and deemed it deeply flawed. Lyft is committed to advocating for a statewide solution that considers the needs of both riders and drivers and expressed its hope to return to Minneapolis in the near future.

If Uber and Lyft follow through with their threats, the Twin Cities would be the only metropolitan area in the United States without access to these popular ride-hailing apps. The absence of these services could significantly impact transportation options for residents and visitors in the region.

It remains to be seen whether Uber and Lyft's warnings are merely a bluff or if they will indeed remove their services from Minneapolis. The decision ultimately rests on the outcome of ongoing discussions between the ride-hailing companies, city officials, and other relevant stakeholders.