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Uber and Lyft are quitting Minneapolis over a driver pay increase

Uber and Lyft say they're ending services in Minneapolis over a city-mandated driver pay increase. The city council pushed through the measure to bring driver pay closer to the local minimum wage of $15.57 an hour.

Lyft says the increase is "deeply flawed," citing a Minnesota study indicating that drivers could meet the minimum wage and still cover health insurance, paid leave and retirement savings at lower rates of $1.21 per mile and 49 cents per minute. However, Minnesota Governor Tim Walz last year vetoed a bill to boost wages for Uber and Lyft drivers, citing concern over the state becoming one of the most expensive places in the country for ridesharing. If Uber and Lyft follow through on their threat to quit Minneapolis, that could make it harder for people (particularly folks with disabilities and those who can't afford a car of their own) to get around.

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