Uber, Lyft Set To Leave Minneapolis After Council Passes Wage Hike

MINNEAPOLIS — Uber and Lyft are set to leave Minneapolis on May 1 after a veto-proof majority of the City Council voted to give rideshare drivers increased wages.

Council members voted 9-4 for the ordinance despite vocal, longstanding opposition from Uber and Lyft, plus a veto threat from Mayor Jacob Frey.

A similar drama played out in Minneapolis last August, but members were unable to override Frey's veto.

The ordinance passed Thursday requires drivers to receive $1.40 per mile and 51 cents per minute during a ride, or $5, whichever is more.

Additionally, the bill requires annual increases based on the city's minimum wage. And if a ride is canceled while the trip has already begun, the driver can expect 80 percent of the fare.

If the council successfully overrides a likely mayoral veto, Uber and Lyft said Thursday they will leave Minneapolis on May 1. That's when the ordinance would go into effect, the Star Tribune reported.

Last year, Gov. Tim Walz vetoed a similar bill passed by the Minnesota Legislature, saying it wasn't ready to become law.

"This bill could make Minnesota one of the most expensive states in the country for rideshare, potentially putting us on par with the cost of rides in New York City and Seattle — cities with dramatically higher costs of living than Minnesota," Walz told state lawmakers at the time.

The state bill would have required drivers to be paid at least $5 per ride, or at least $1.45 per mile and 34 cents per minute in the Twin Cities metro area.