Uber and Lyft are quitting Minneapolis over a driver pay increase

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Uber and Lyft are quitting Minneapolis over a driver pay increase
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Kris Holt joined Engadget as a contributing reporter on the news desk in 2018. He has been writing about technology, games, streaming and entertainment for over a decade after starting his career as a sub-editor on a local newspaper. Kris holds a Master of Arts degree in English from the University of Dundee.

after the city council voted to increase driver pay. The council passed an ordinance on the issue last week. On Thursday, it voted to overrule a mayoral veto of the measure.

The new rules stipulate that ridesharing companies need to pay drivers at least $1.40 per mile and 51 cents per minute whenever they're ferrying a passenger. Tips are on top of the minimum pay. According to theHowever, Uber and Lyft say they'll end services in the city before the pay rise takes effect on May 1.

An Uber spokesperson told the publication that the company was disappointed by the council's choice to "ignore the data and kick Uber out of the Twin Cities,” putting around 10,000 drivers out of work. They noted Uber's confidence that by working with drivers, drivers and legislators, “we can achieve comprehensive statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps rideshare affordable.

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