The recent decision by the Minneapolis City Council to require ride-hailing companies to pay drivers a higher rate while operating within city limits has stirred up concern and debate. The ordinance mandates a minimum rate of $1.40 per mile and $0.51 per minute, or $5 per ride, whichever is greater, excluding tips. This move aims to ensure that drivers receive fair compensation equivalent to the city's minimum wage of $15.57 per hour.
Uber and Lyft have expressed their intention to cease operations in Minneapolis when the ordinance takes effect on May 1. Uber plans to halt services in Minneapolis, St. Paul, and the Twin Cities metro area, affecting over 3 million residents. Lyft, on the other hand, will only discontinue operations in Minneapolis but will continue servicing the airport.
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