Lyft is threatening to leave Minneapolis over a wage hike.
The ride-hailing company recently said in a statement that it would leave the city of Minneapolis if its city council decides to increase the minimum wage for rideshare drivers by law.
Uber, Lyft's rival in the ride-hailing industry, has also voiced its opposition to such a decision.
Bigger Salary, Less Riders
Lyft is not happy with a Minneapolis bill getting so much support in the city. According to a report from Business Insider, the company stated that the bill Minneapolis council members are considering would double Lyft's ride prices, preventing anyone but the wealthiest to afford a ride with the company.
The price hike will also mean less demand for rideshare drivers, causing them to earn less per ride or even stop working as rideshare drivers entirely.
Lyft also said it will be forced to cease operating within the city and leave it come Jan. 1, 2024, if the city council enacts the bill in a separate letter sent Tuesday. As such, it is urging Minneapolis, major Jacob Frey, to veto the bill, which he could do until Aug. 23.
Should the bill be turned into law, Lyft drivers could earn a minimum of $1.40 for every mile and $0.51 for each minute, or a flat rate of $5 if it's higher. However, this change will only apply to rides within the city of Minneapolis.
The bill also gives rideshare drivers benefits and protections. These include requiring rideshare companies to inform drivers of the estimated distance and duration to the rider's pickup point and for the entire ride before offering them the job.
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The call to increase the minimum wage of "gig workers" across the country has gained many supporters and opponents alike. According to a report from CNN, states and cities across the US have attempted to pass legislation regarding the growing "gig economy" or freelance work through companies like Uber and Grubhub.
Unfortunately, this legislation was met with fierce opposition from opponents. The city of Minneapolis is no exception - city council members voted 7-5 in favor of the bill.
For those unaware, the Minneapolis city council consists of 12 democrats and an independent.
Opposition Abound
Lyft isn't the only one raging against the Minneapolis City Council's decision to vote for the bill. Uber, Lyft's rival, has also expressed their disapproval of the recent turn of events.
The company also sent a similarly written letter to the Minneapolis city council threatening them with reduced service or a potential shut down of operations in the city if the bill is passed into law.
"We are disappointed by the results of today's vote and the overall process in Minneapolis," an Uber spokesperson told Insider in an emailed statement. "If this bill were to pass, we would unfortunately have no choice but to greatly reduce service, and possibly shut down operations entirely."
Mayor Frey, in response, stated that the bill stands to have a significant impact on the city in terms of worker protections, public safety, disability rights, and transportation mode shift goals. As such, more time is needed to deliberate on the bill further.
However, Frey's statement doesn't mean he is in support of Lyft and Uber. A spokesperson for the Office of the Major said that the mayor supports drivers being paid more.
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