Minneapolis’ only two licensed ride-hailing companies, Uber and Lyft, have vowed to stop serving the city on May 1, when a new ordinance requiring minimum driver pay takes effect.
It’s been controversial. Groups of well-organized drivers have complained of substandard pay, and the rideshare companies have said — after mounting pressure — they’d accept some level of minimum pay requirements.
But the figures set by the City Council, over the veto of Mayor Jacob Frey, appear to be so high that the companies would rather leave. Other drivers have said the existing pay levels are fine.
Here are some answers to questions we’ve been getting a lot:
Is this really happening?
It looks like it. Both companies have told drivers and riders that they’re done come May 1. Uber has said it will close its only Twin Cities service hub on April 15.
Some supporters of the city ordinance say they’re bluffing.
Can this be undone?
Yes, but perhaps not in time to avoid all disruptions. The City Council still has time to lower its pay minimums, and a majority of members say they’re open to doing that at the end of April.
Another option: State lawmakers and Gov. Tim Walz could create a law that trumps the city ordinance. They’re grappling with it. That’s what lured Uber and Lyft back to Austin, Texas, a year after a city ordinance prompted them to leave.