Uber Plans To Leave Entire Metro, Airport After Pay Hike: Reports

TWIN CITIES, MN — Uber reportedly plans to cease operations throughout the entire Twin Cities metro area and the MSP Airport, not just the city of Minneapolis, after council members Thursday overrode Mayor Jacob Frey's veto of a controversial ordinance giving rideshare drivers a pay hike.

The Twin Cities will become the only metro area in the U.S. without Uber.

"We are disappointed the Council chose to ignore the data and kick Uber out of the Twin Cities, putting 10,000 people out of work and leaving many stranded," Uber Senior Director of Public Affairs at Uber Josh Gold told Patch.

"But we know that by working together with all stakeholders - drivers, riders and state leaders - we can achieve comprehensive statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps rideshare affordable."

Uber and its competitor, Lyft, both plan to leave the city on May 1, when the ordinance goes into effect.

Lyft has begun issuing notices to its drivers that the company's days are numbered in Minneapolis. The company told Patch it does not plan to leave the metro entirely.

The measure that passed Thursday requires drivers to receive $1.40 per mile and 51 cents per minute for all portions of a ride occurring within Minneapolis. The rates best approximate the city’s $15.57 minimum wage, supporters say.

Additionally, the bill requires annual increases based on the city's minimum wage. And if a ride is canceled while the trip has already begun, the driver can expect 80 percent of the fare.

The median earnings for drivers in the metro area is $13.63, with 25 percent of drivers in the metro area earning under $10.54 per hour, according to state labor data.

"This is a David and Goliath story," Council Member Robin Wonsley said immediately after the vote Thursday.

"Uber and Lyft want us to believe they are untouchable, and the status quo of exploiting workers cannot be fixed. Today’s vote demonstrated that all of this was just a question of political will."

Last year, Gov. Tim Walz vetoed a similar bill passed by the Minnesota Legislature, saying it wasn't ready to become law.

"This bill could make Minnesota one of the most expensive states in the country for rideshare, potentially putting us on par with the cost of rides in New York City and Seattle — cities with dramatically higher costs of living than Minnesota," Walz told state lawmakers at the time.

The state bill would have required drivers to be paid at least $5 per ride, or at least $1.45 per mile and 34 cents per minute in the Twin Cities metro area.