5./15 WEST
Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) will halt operations in Minneapolis starting May 1 after the city council voted to override Mayor Jacob Frey’s veto of a pay hike ordinance, which critics previously warned would raise costs for customers and lead to the firms’ exit from the city.
The council voted 10-3 to override the veto, meaning ride-hailing services in the city will be required to raise driver wages to the local minimum of $15.57/hour.
“The council chooses workers over corporate greed,” said council member Jamal Osman, adding that the council will not allow any community to be exploited for cheap labor.
“We’re disappointed the council chose to ignore the data and kick Uber (UBER) out of the Twin Cities, putting 10,000 people out of work,” the company said in a statement.
Lyft said the “deeply flawed” ordinance makes its operations in the city unsustainable. “We will continue to advocate for a statewide solution that balances the needs of riders and drivers, and hope to return to Minneapolis as soon as possible.”
Frey said the council’s vote would massively impact the region. “Getting a raise doesn’t do a whole lot of good if you lose your job,” he said, adding that he’d like to work with all stakeholders to reach a solution before May 1.
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