Uber and Lyft to Cease Operations in Minneapolis Following Ordinance Approval
In the wake of a recently passed ordinance by the Minneapolis city council, Uber and Lyft have announced their decision to discontinue ridesharing services within the city limits. The ordinance, set to take effect on May 1st, mandates a minimum pay rate for drivers of $1.40 per mile and 51 cents per minute while transporting a passenger.
Companies Respond to Increased Driver Compensation
The move to ensure drivers receive a starting minimum wage of approximately $18 per hour has prompted both Uber and Lyft to reevaluate their operations in Minneapolis. This development follows a similar situation in the United Kingdom in 2021, where Uber was compelled to provide its drivers with a minimum wage after a court ruling.
The ordinance was passed with the intention of improving driver earnings and ensuring fair compensation for their services.
Impact on Ridesharing in Minneapolis
As a result of the companies’ decision to pull out of the city, residents and visitors will no longer have access to Uber and Lyft’s ridesharing services once the ordinance is implemented. This change is expected to have a significant impact on the local transportation landscape, as many individuals have come to rely on these platforms for their daily commutes and occasional trips.
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So Uber and Lyft might ditch Minneapolis just because of fair pay demands? Tell me more!