Uber and Lyft say they'll both LEAVE Minneapolis on May 1 after city council enacted new $15.57-an-hour minimum wage for its drivers

Uber and Lyft say they'll withdraw from Minneapolis from May 1 after the city enacted a new $15.57-an-hour minimum wage for drivers. 

The ride-sharing services announced their withdrawal Thursday, hours after the Minnesota city's council voted 10-3 to overrule Mayor Jacob Frey's veto of the ordnance.

Minneapolis' new law comes into effect May 1 - the same day Uber and Lyft now plan to stop offering ride shares in the city.

Frey, a Democrat, had pleaded with his fellow lawmakers to lower the minimum wage to a level more acceptable to Uber and Lyft bosses.

Minnesota, pictured on February 21 2024, is set to lose Uber and Lyft ride sharing services thanks to a new minimum wage law 

Minneapolis Mayor Jacob Frey's bid to stop Uber and Lyft withdrawing from his city has failed, after city lawmakers insisted on passing a new minimum wage bill  

Local Uber and Lyft drivers say current rules mean they can no longer make ends meet. Many were cabbies before the apps became popular - with that type of taxi service all-but disappearing after ride-sharing start-ups boomed in popularity. 

Uber and Lyft issues statements that simply confirmed plans to cease operations.

Both companies continue to operate in New York City and Seattle, which have similar minimum wage laws. 

Minneapolis' proposed wages sit far higher than figures proposed by a Department of Labor and Industry report.

Federal officials suggested drivers be paid 89 cents per mile and 49 cents a minute to reach minimum wage. 

Bumping pay up to $1.21-a-mile and 49 cents a minute would enable drivers to receive paid leave, health insurance and retirement savings.

Uber and Lyft will withdraw from Minneapolis on May 1, sparking fears of travel chaos for locals who rely on their cabs 

But Minneapolis city councilors passed pay of $1.40-a-mile and 51 cents a minute, which equates to $15.57-an-hour. 

Drivers of disabled-access cabs would have gotten $1.20-per-mile and 35 cents a minimum.

Lawmakers also decreed a $5 minimum for all ride-share rides. It is unclear if bosses at Uber and Lyft would be willing to compromise with Minneapolis should lower minimum wages be offered. 

Republicans who represent Minnesota suburbs say they're planning to introduce a state-wide bill to stop similar laws being enacted in their areas they fear could deprive locals of transport options.

Rep. Pat Garafolo told the Star Tribune: 'This is clearly unacceptable to Minnesotans, it jeopardizes the quality of life of our state, the freedom of mobility for seniors and limits the opportunity for people to get around.'

Uber, which launched in 2010, and Lyft, which launched in 2012, revolutionized the taxi industry by letting riders book cabs using an app on their phones and take cashless rides.

Payments made using a card whose details were uploaded to the app. Both San Francisco-headquartered firms were hailed for the convenience of their offerings.

But they've also been blamed for destroying millions' of taxi drivers livelihoods and lowering fairs to kill the local cab trade, then jacking them up after that mission has been accomplished. 

The firms have also been accused of exploiting workers, who they classify as freelance 'gig' workers, rather than regular staff members.