Ride-hailing giants Lyft and Uber have announced they will be pulling out of Minneapolis after city council members once again overrode Mayor Jacob Frey’s veto.
The move comes after the council passed a new ordinance requiring the companies to pay their drivers a minimum wage of $15.57 an hour, or $5 per ride.
Lyft has called the ordinance “deeply flawed” and stated that it makes their operations in Minneapolis unsustainable. They have vowed to cease operations on May 1, the day the law goes into effect. Uber has similarly threatened to leave the entire metro area, including the airport if the ordinance is not overturned.
This is not the first time the city council has defied Mayor Frey’s wishes. In February, they overrode his veto of a resolution calling for a permanent cease-fire in Gaza.
This move, however, will leave 10,000 US drivers out of work and leave many residents stranded.
But it doesn’t stop there. The implications of this decision go beyond just ride-hailing services. Disabled residents who rely on Uber and Lyft for transportation will also be left in a lurch. Michael Sack, a disability advocate, expressed concern over the uncertain future of these essential services for individuals with disabilities.
Minneapolis forces higher wages for Uber and Lyft, they pull out of the city, now there are worries the handicapped will lose the ability to travel.
Socialism is the theory that you “help” vulnerable people by eliminating their jobs and making things unaffordable for them. pic.twitter.com/a9ccqaj5RA
— Richard Hanania (@RichardHanania) March 16, 2024
Meanwhile, Republican lawmakers at the state Capitol have promised to work with their Democrat counterparts to find a solution. House Majority Leader Erin Murphy stated that they are committed to giving drivers a raise while also ensuring the companies can continue to operate.
This is not the first time Dems have pushed for policies that only benefit a select few while disregarding the needs of the larger community. This is the danger of one-party rule. Their actions have now caused the very companies that provide essential transportation services to leave the city, leaving residents and drivers in a state of uncertainty.
Lyft and Uber are planning to leave Minneapolis because the city council is making them raise driver pay to the local minimum wage of $15.57 an hour
The measure mandates a minimum of $1.40 per mile and $0.51 per minute for each ride, or $5 per ride, whichever is higher,… pic.twitter.com/uXgLP9Y7cL
— Unlimited L’s (@unlimited_ls) March 16, 2024
