Uber and Lyft to Exit Minneapolis Over New Minimum Wage Law

The rideshare giants' departure, set for May 1, follows a city mandate for driver pay, sparking debate and calls for a statewide solution.

Uber and Lyft have announced they will cease operations in Minneapolis starting May 1, following the City Council's decision to mandate a minimum wage for rideshare drivers.
The mandate requires drivers to be paid $1.40 per mile and $51 cents per minute, or $5.00, whichever is greater, leading to concerns about the sustainability of rideshare services.
The decision has sparked controversy and debate, with 10,000 drivers facing unemployment and concerns about the impact on local businesses and drunk driving incidents.
State and city officials, including Governor Tim Walz, have called for a reconsideration of the mandate and are seeking a statewide solution to the issue.
Other small TNCs have indicated interest in entering the Minneapolis market if Uber and Lyft leave, while the possibility of robotaxis is seen as a long-term solution to rideshare challenges.