In a significant development, Uber has announced its decision to shut down its lone service center in the Twin Cities and pull out of the metro area entirely due to an ongoing pay dispute with the Minneapolis City Council. The closure of the Greenlight Hub in Richfield is scheduled for April 15, leaving Uber drivers without a physical location to seek assistance with document renewal, vehicle approval and inspection, and other related matters.

The San Francisco-based rideshare company's head of Mobility Operations in the U.S. and Canada, Camiel Irving, approached drivers through a letter stating Uber's intention to withdraw from the market and cease operations at the Minneapolis-St. Paul International Airport on May 1, coinciding with the implementation of new regulations. These moves come as a response to the recent vote by the Minneapolis City Council to raise pay for rideshare drivers.

Irving acknowledged in the letter that this decision would have extensive negative consequences for the Twin Cities, impacting thousands of drivers who would lose their source of income. Additionally, the absence of Uber services would inconvenience individuals who rely on the platform for their daily commute or safe transportation after social outings.

There are speculations among drivers like Howard Snitzer, a resident of Kenyon, Minnesota, that the closure of the Greenlight Hub is part of Uber's strategy to put pressure on Minneapolis officials to reconsider the driver pay ordinance. Snitzer, who has been driving for Uber and Lyft for the past five years, believes that the City Council has not adequately represented the interests of drivers and hopes that Governor Walz will intervene to resolve the matter.

Meanwhile, representatives from both the Republican and Democratic parties at the State Capitol have introduced bills aimed at granting state control over rideshare regulations. This legislative action seeks to address concerns raised by Uber and other rideshare companies regarding the Minneapolis City Council's decision.

Uber driver David Ralls, who has been with the company for seven years, believes that Uber's decision to withdraw from Minneapolis is not a bluff, citing the company's departure from Austin, Texas under similar circumstances. Ralls argues that while the City Council is focusing on protecting drivers' interests, the true "little guy" in this situation is the passenger.

Irving, in the letter, expressed Uber's support for legislation that would ensure all drivers in Minnesota earn at least the minimum wage after expenses. He urged drivers to reach out to state lawmakers and advocate for legislation that increases fares, preserves flexibility, and keeps ridesharing affordable.

As the deadline approaches for Uber's closure of its service center and planned exit from the market, the fate of rideshare services in Minneapolis remains uncertain. The Minneapolis City Council is under pressure to reevaluate the impact of its pay raise ordinance, while lawmakers are wrestling with ways to regulate the rideshare industry at the state level.