Uber Technologies and Lyft have announced their intention to cease operations in Minneapolis.
The mentioned companies’ business in the specified city will be stopped on May 1 of the current year. The reason for the decisions of Uber Technologies and Lyft to cease operations in Minneapolis is that local authorities paved the path for rideshare drivers to be paid the minimum wage. The city’s council voted 10-3 to override Mayor Jacob Frey’s veto. As a result of this decision, rideshare drivers in Minneapolis will earn $15.57 per hour.
Uber representatives expressed their disappointment that the Council ignored the data and kicked the company out of the Twin Cities. The firm noted that as a result of this decision, 10,000 people lost their jobs and many of them faced difficulties.
Lyft described the Council’s actions as deeply flawed. The company also said it hoped to resume operations in Minneapolis in the future.
Rideshare and delivery drivers staged a protest on Valentine’s Day in the current year. In this case, claims were made about the fairness of wages and conditions of activity.
The New York Attorney General’s Office said in November that Uber would pay $290 million and Lyft would pay $38 million to resolve a multi-year investigation into the companies, describing it as the largest wage theft settlement in the office’s history.
The Minnesota state’s Department of Labor and Industry released a report last week, which contains a statement that the mentioned companies are likely not to increase the cost of services to those levels that will provoke a drop in consumer demand and a decrease in fees.
As we have reported earlier, Uber Eats Launches Live Location Sharing.
