Ride-sharing companies Uber and Lyft will cease services in Minneapolis following a hike in minimum wage for drivers.
Minneapolis Uber and Lyft Drivers Face Uncertainty as Minimum Wage Ordinance Vetoed
In Minneapolis, the ongoing debate over fair compensation for ride-hailing drivers has reached a critical point. The minimum wage for Uber and Lyft drivers in the city remains unchanged, as Mayor Jacob Frey vetoed a city council ordinance that would have established a $15 minimum wage specifically for these drivers in August 2025[1][3][4].
The proposed minimum wage for drivers in Minneapolis, as outlined by the city council, would be $1.40 per mile and $0.51 per minute[2]. However, the veto has resulted in Minneapolis drivers not having the protected $15 minimum wage that was proposed.
Grassroots coalitions, led by worker and socialist groups, have been pushing for a $15 minimum wage, highlighting tension between city leadership and labor advocates[4]. A state analysis on Uber and Lyft wages has added fuel to the fire, indicating a need for higher minimum pay for rideshare drivers in Minneapolis[5].
Lyft, one of the major players in the ride-hailing industry, has expressed major concerns about the city council's ordinance. The company's statement to Gizmodo mentions that the current ordinance would make rides unaffordable for the majority of Minneapolis residents[1]. A spokesperson for Lyft has also stated that the company supports a minimum earning standard for drivers but finds the current ordinance problematic.
The Minneapolis Uber/Lyft Drivers Association (MULDA) is a group that has mobilized support for the wage hike for drivers in the Twin Cities. However, with Lyft's announcement that it will leave the Minneapolis market, along with Uber, thousands of drivers will be affected, potentially losing their jobs[2].
Uber has stated that the city council's decision could put 10,000 people out of work and leave many stranded[2]. The company has also announced it will stop servicing the largest airport in the area, MSP, which is located in an unorganized territory that also holds the state's first military fort.
The city of Minneapolis has a large Somali-American community, and the city council has shown resistance to the East African community being exploited by cheap labor, as stated by Jamal Osman[6]. However, the Democratic mayor of Minneapolis, Jacob Frey, vetoed the wage hike, expressing concern about drivers losing their jobs[2].
The city council voted 10-3 to override the mayor's veto on a minimum wage for drivers, but it remains to be seen how this will play out in the coming months. Minnesota's Democratic governor, Tim Walz, vetoed a similar pay floor for rideshare drivers statewide last year[7].
Lyft, like Uber, has announced it will stop offering service in Minneapolis starting May 1[7]. However, the company hopes to return to Minneapolis "as soon as possible." Local independent news outlet the Minnesota Reformer reports that this is different from an analysis published by the state in 2022, which estimates drivers in Minneapolis would need to earn $0.89 per mile and $0.49 per minute to achieve the minimum wage[6].
This situation reflects ongoing disputes over fair compensation for ride-hailing drivers amidst political and business interests in Minneapolis. The future of ride-hailing services in the city remains uncertain, and the impact on drivers and customers is a significant concern.
[1] - https://www.gizmodo.com.au/2025/08/lyft-uber-minneapolis-minimum-wage-veto/ [2] - https://www.reuters.com/business/autos-transportation/uber-lyft-to-leave-minneapolis-over-minimum-wage-ordinance-2025-04-01/ [3] - https://www.startribune.com/minneapolis-mayor-vetoes-15-minimum-wage-for-uber-lyft-drivers/600146756/ [4] - https://www.citypages.com/news/minneapolis-mayor-vetoes-15-minimum-wage-for-uber-lyft-drivers/5988858 [5] - https://www.minnpost.com/second-shift/2025/03/analysis-shows-minneapolis-rideshare-drivers-need-to-earn-more-to-make-minimum-wage/ [6] - https://minnesotareformer.com/minneapolis-minimum-wage-for-uber-and-lyft-drivers-remains-unsettled-amidst-political-disputes/ [7] - https://www.twincities.com/2025/04/15/uber-and-lyft-to-leave-minneapolis-starting-may-1-as-city-council-overrides-mayors-veto-on-minimum-wage-for-drivers/
- The veto on the minimum wage ordinance has cast uncertainty over the future of tech businesses like Uber and Lyft in Minneapolis' general-news sphere.
- With the proposed $15 minimum wage for ride-hailing drivers in Minneapolis still up in the air, finance experts predict potential instability in the city's business sector, especially in the tech and technology industries.
- Amid this ongoing political and business dispense over fair compensation for ride-hailing drivers, forward-looking investors may consider diverting funds away from Minneapolis tech and rideshare companies until the situation stabilizes.
