Uber and Lyft's Departure: Lessons for Minneapolis

Uber and Lyft are threatening to cease operations in the Twin Cities due to an ordinance guaranteeing rideshare drivers increased pay and protections, which the companies argue will make rides unaffordable for most residents. This move mirrors their departure from Austin, Texas in 2016, where they left due to a measure requiring fingerprint background checks for drivers. Governor Tim Walz and Mayor Jacob Frey have condemned the ordinance, suggesting a statewide solution may be necessary. Without an agreement, Lyft plans to end service in Minneapolis, while Uber intends to cease operations in the entire metro area. Experts believe smaller companies may emerge to meet demand if the rideshare giants leave.