Uber, Lyft to cease operations in Minneapolis over pay

Uber and Lyft are set to suspend operations in Minneapolis due to a wage dispute with the city council.

Despite opposition from Mayor Jacob Frey, the council voted 10-3 to override his veto.

Why?
Last August, the council passed a bill mandating drivers to be paid the local minimum wage of $15.57 an hour, effective May 1.

The mandate specifies that drivers must earn a minimum of $1.40 per mile and $0.51 per minute within Minneapolis.

Both companies criticized the move, with Lyft calling the bill “deeply flawed,” while Uber expressed disappointment. The move will impact thousands of workers and stranded passengers.

Meanwhile, New York City’s recent implementation of a minimum pay rate for food delivery workers has sparked legal challenges from delivery apps like Uber Eats and DoorDash.