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Ride-sharing companies Uber and Lyft are threatening to pull out of Minnesota’s largest city in response to a law regulating minimum wage for drivers.
The two competing companies reported that they intend to leave the Twin Cities in early May after the city council passed a mandatory minimum wage for drivers on Thursday. Local Outlet Fox 9.
“Uber supports comprehensive, statewide legislation that guarantees drivers a minimum wage of $35 per hour while on the job and protects driver flexibility and independence. We look forward to working with riders and Congress to bring ridesharing back.” Uber reads.
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Uber and Lyft are scheduled to leave the region in May unless changes are made. (The Smith Collection/Gado via Getty Images/Getty Images)
” [City Council] “We are taking over the state’s process to propose real solutions and are analyzing data to inform viable revenue standards,” the rideshare company said in a statement to Minneapolis officials. Actual data was collected to derive appropriate minimum income standards. ”
Uber has said it will exit the market on May 1 unless Congress’s authority is changed or revoked.
Uber competitor Lyft issued a similar statement of opposition, saying the company is “committed to working with all stakeholders on more sustainable and thoughtful policy solutions, but if this particular proposal… If passed, Lyft would be forced to cease operations in the city on the 21st.” May 1st. “
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The City Council voted Thursday to require minimum wage for rideshare drivers. (UCG via Getty Images / Getty Images)
“We support minimum income standards for drivers, but they must be done in a way that allows services to operate sustainably and affordably for passengers. The second time, we intentionally chose to ignore the offer, “choosing to rush through the most extreme numbers possible rather than cooperating,” Lyft’s statement reads. “We urge Mayor Frey to veto this bill and instead join our efforts to pass a statewide minimum income standard that balances the needs of all people. I beg you.”
Lyft also has a May 1st end date for service in the Twin Cities area.
A similar threat was made by a rideshare company in Austin, Texas, following a law requiring drivers to be fingerprinted.
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Both companies insist on minimum income standards for drivers. (Getty Images)
Other companies quickly rushed to fill the void left by Uber and Lyft, and both companies eventually returned to the Austin area without complaint.
Cities like New York and Seattle have passed minimum wage mandates for rideshare drivers and faced backlash from the industry, but remain open.
