Lyft and Uber Threaten to Leave Minneapolis

Lyft and Uber Threaten to Leave Minneapolis

( – The ride-sharing services, Uber and Lyft, have announced that they will no longer provide their services to Minneapolis, Minnesota. The March 14 vote by the city council to require these services to pay their drivers the same minimum wage that Minneapolis set for workers of $15.57 per hour was to override the mayor’s veto of the bill.

A statement from Lyft said that the bill the city council passed is flawed. They added that they do support a minimum wage for their drivers, just not that one. Their concern is for the riders, as their aim is to operate their business in such a way as to give an affordable service to their riders while maintaining a living wage for their drivers.

Lyft said that, as a result of this flawed law, they will cease their operations in the city of Minneapolis on May 1, when the law becomes effective. Uber stated to the news media that they were disappointed with the bill as it put thousands of employees out of jobs and would leave many without rides.

Republicans in the State House of Representatives have proposed legislation on March 14 to override any local bills regarding ride-share services. Both Uber and Lyft stated that they would support a more reasonable proposal by the state.

The bill as it stands will surely raise the costs of ride-sharing services for everyone. People with disabilities and low incomes rely on these services as they cannot afford the higher taxi fees. Critics of the bill argue that it will negatively impact drivers, who often accept lower wages due to their immigration status or limited resources.

Jamal Osman, a member of the city council who contributed to the policy’s drafting, stated that the bill aims to provide drivers, many of whom have families, with the dignity of a decent wage. He added that their vote speaks to all concerned and that they won’t allow any community to be taken advantage of just for cheap labor.

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