It could be harder to get around Minneapolis after Lyft and Uber say they’re ready to exit the town.
On Thursday, the Minneapolis City Council voted to increase driver wages to the local minimum wage for the town, which is $15.57 per hour.
But that was an excessive amount of for the ride-share firms, which are actually threatening to leave the town due to the brand new minimum wage implementation which is able to force them to pay drivers a flat fee.
The choice comes after the City Council voted 10 to 3 to override a veto by the town’s mayor to instate a pay raise ordinance for drivers in the town.
“It ought to be done in an honest way that keeps the service inexpensive for riders,” Lyft said in a statement. “This ordinance makes our operations unsustainable, and consequently, we’re shutting down operations in Minneapolis when the law takes effect on May 1.”
Related: Lyft Becomes First Rideshare Company to Implement Minimum Pay For Drivers
Uber issued an identical statement provided to local outlet Fox 9.
“We’re upset the Council selected to ignore the info and kick Uber out of the Twin Cities, putting 10,000 people out of labor and leaving many stranded,” the corporate said. “But we all know that by working along with all stakeholders – drivers, riders and state leaders – we will achieve comprehensive statewide laws that guarantees drivers a good minimum wage, protects their independence and keeps rideshare inexpensive.”
Related: DoorDash, Uber Eats Adding Latest Fees in NYC to Offset Costs
Last month, Lyft became the primary ride-share app to implement minimum pay for drivers by guaranteeing that drivers would take home a minimum of 70% of what riders pay, no matter external fees.
“We predict hopefully it can get more drivers driving for Lyft, but in addition just make the entire sector stronger,” Lyft CEO David Risher told Reuters on the time. “We have now more drivers now than we have had, I believe, because the middle of 2019. It’s strong and I let you know what, it’s getting even stronger.”
If Uber leaves Minneapolis, it can make the town the one U.S. metro area without Uber within the country.
Uber was up a whopping 140% 12 months over 12 months upon the news as of Friday morning. Lyft (*1*)was up over 93% for a similar period at the identical time.