Ride-sharing giants Uber and Lyft are gearing up to exit Minneapolis as tensions rise over a new mandate requiring a minimum wage for drivers. The Minneapolis City Council’s decision to impose this requirement has triggered a standoff between the council and the ride-sharing companies, with both sides digging in their heels.

According to local outlet Fox 9, Uber and Lyft have issued ultimatums, stating their intentions to cease operations in Minneapolis starting May 1 if the mandate is not revised or revoked. This move comes after the council voted in favor of a proposal mandating a minimum wage for rideshare drivers, a decision that has drawn sharp criticism from both companies.

In a statement, Uber expressed its support for comprehensive statewide legislation that guarantees drivers a minimum earnings threshold while preserving their flexibility and independence. The company emphasized its preference for a statewide approach to regulation rather than piecemeal mandates at the city level.

Similarly, Lyft opposed the council’s proposal, warning that it would be forced to cease operations in Minneapolis if the mandate became law. Both companies underscored their commitment to finding a more sustainable and thoughtful policy solution in collaboration with stakeholders.

The council’s proposal, which would require rideshare companies to pay drivers a minimum rate per mile and per minute, has reignited a longstanding debate over driver pay and working conditions in the gig economy. While supporters argue that the mandate is necessary to ensure fair compensation for drivers, opponents contend that it would lead to higher prices for riders and reduced opportunities for drivers.

The standoff highlights the challenges inherent in regulating the gig economy, where traditional labor laws often struggle to keep pace with evolving business models. As cities grapple with balancing between protecting workers’ rights and fostering innovation, the outcome of the Minneapolis dispute could have broader implications for the future of ride-sharing regulation nationwide.

With tensions running high and the stakes mounting, all eyes are on Minneapolis as the city council weighs its next steps in this high-stakes showdown between ride-sharing giants and local lawmakers. As the deadline for Uber and Lyft’s potential departure looms, the fate of rideshare drivers and passengers hangs in the balance.