Uber and Lyft in Minneapolis: Ride-hailing apps say May 1 will be final day
Uber, Lyft in Mpls: City council overrides veto
The Minneapolis City Council has overridden Mayor Jacob Frey's veto on the ordinance that raises ride-hail drivers pay to be equivalent to Minneapolis's minimum wage. FOX 9's Karen Scullin has more.
MINNEAPOLIS (FOX 9) - After the Minneapolis City Council voted 10-3 to override Mayor Jacob Frey's veto of a ride-hailing pay raise ordinance on Thursday, Uber says it will pull out of the entire Twin Cities metro starting May 1.
In a statement Thursday afternoon, Uber wrote: "We are disappointed the Council chose to ignore the data and kick Uber out of the Twin Cities, putting 10,000 people out of work and leaving many stranded. But we know that by working together with all stakeholders - drivers, riders and state leaders - we can achieve comprehensive statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps rideshare affordable."
Uber says starting May 1, they will be forced to stop operating in the entire Twin Cities metro. Lyft issued a similar statement with the same deadline to stop service in Minneapolis.
Uber and Lyft leaving Minneapolis a bluff?
On May 1, Uber and Lyft are threatening to abandon Minneapolis after the city passed an ordinance to give minimum wage to drivers. But is it a bluff?
"This ordinance is deeply flawed, and the rates it sets are far higher than what the state's study suggested. We support a minimum earning standard for drivers, but it should be done in an honest way that keeps the service affordable for riders," the Lyft statement reads. "This ordinance makes our operations unsustainable, and as a result, we are shutting down operations in Minneapolis when the law takes effect on May 1. We will continue to advocate for a statewide solution in Minnesota that balances the needs of riders and drivers and hope to return to Minneapolis as soon as possible."
The new ordinance aims at guaranteeing drivers earn minimum wage in Minneapolis. It requires ride-hailing companies to pay drivers rates equivalent to the city's minimum wage of $15.57.
Frey also vetoed a similar ordinance passed last year. But, this time around, with two new council members, there were enough votes to override the veto.
If Uber does make good on its threats, the Twin Cities would become the only metro without the ride-hailing app in the United States.
The CEO of Empower, another ride-hail app, has said that if Uber and Lyft leave the Twin Cities, they can step in to provide an alternative. Currently, Empower is available in Washington D.C., New York City and Winston-Salem and Greensboro, North Carolina.