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Ride-share companies Uber and Lyft are threatening to pull out of Minnesota’s largest city in response to legislation regulating a minimum wage for drivers.
The competing companies both intend to leave the Twin Cities at the beginning of May after the city council voted to mandate a minimum wage for drivers on Thursday, according to local outlet Fox 9.
“Uber supports comprehensive statewide legislation that guarantees drivers $35/hr minimum earnings while working and protects their flexibility and independence. If this ordinance is enacted, we look forward to working with drivers, riders and the legislature to bring rideshare back,” a statement from Uber reads.
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Both Uber and Lyft plan to leave the area in May if changes are not made. (Smith Collections/Gado via Getty Images / Getty Images)
“The [City Council] hijacked a state process that proposed real solutions and is in the process of analyzing data to inform a workable earnings standard,” the ride-share company’s statement to Minneapolis officials reads. “The state’s task force made a series of recommendations that should be legislated and collected real data to come up with an appropriate minimum earnings standard.”
Uber says it will exit the market on May 1 if the council’s mandate is not modified or revoked.
Uber competitor Lyft released a similar statement of disapproval, saying that the company is “committed to working with any stakeholders on a more sustainable and thoughtful policy solution, but if this particular proposal becomes law, it will force Lyft to cease operations in the City on May 1.”
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The city council voted on Thursday to mandate a minimum wage for ride-share drivers. (UCG via Getty Images / Getty Images)
“We support a minimum earnings standard for drivers, but it must be done in a way that allows the service to sustainably and affordably operate for riders. For the second time in less than a year, the bill-sponsors have willfully chosen to ignore offers to collaborate, instead choosing to rush through the most extreme figures possible,” the Lyft statement reads. “We implore Mayor Frey to veto this legislation and instead join our efforts to pass a statewide minimum earnings standard that can balance the needs of all.”
Lyft has also marked May 1 as the date it plans to end service in the Twin Cities area.
Ride-sharing companies made similar threats in Austin, Texas, following legislation requiring drivers to be fingerprinted.
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The companies are insisting on a minimum earnings standard for its drivers. (Getty Images)
Other companies quickly rushed to fill the void left by Uber and Lyft — and eventually both returned to the Austin area without complaint.
Cities such as New York and Seattle have passed minimum wage mandates for ride-share drivers and faced pushback from the industry, but operations have continued.
