Uber and Lyft will no longer do business in the Twin Cities after the socialist run Minneapolis City Council overrode Mayor Jacob Frey’s veto of a city ordinance that mandates ride share companies pay a government dictated rate. Ride sharing is one of the great market creations of the last decade. No longer are travelers stuck hailing stale, over-priced cabs to get around. Uber and Lyft allows travelers to request a lift using their apps from basically any place in the metro area.
Minneapolis socialist council members wanted to ruin a good thing. They passed a measure recently that forced the ride share companies to pay drivers $1.40 per mile and $0.51 for every minute they are providing transportation for a rider. Currently, rates are driven by market demand: what customers are willing to pay and what drivers are willing to charge.
Legislation was passed last year in the Minnesota Legislature, but was vetoed by Governor Tim Walz and lacked the votes for an override. Minneapolis Mayor Jacob Frey vetoed the Council’s measure but yesterday the City Council overrode his veto 10-3.
Now Uber and Lyft say they’re leaving the city by May 1st.
A statement from Lyft responded to the City Council’s move, “It should be done in an honest way that keeps the service affordable for riders. […] This ordinance makes our operations unsustainable, and as a result, we are shutting down operations in Minneapolis when the law takes effect on May 1.”
