(Reuters) – Ride-hailing companies Lyft and Uber will extend their services in Minneapolis till July 1, they said on Thursday, after city officials voted a day earlier to push back the start of a driver pay raise by two months.
The Minneapolis City Council voted unanimously on Wednesday to implement the ordinance that ensures rideshare drivers in the city are paid a minimum wage of $15.57 an hour from July 1 instead of May 1, the Associated Press reported on Thursday.
The city council did not immediately respond to a Reuters’ request for comment on the reported vote.
“The ordinance is unsustainable for our customers and would force us to shut down operations in Minneapolis when the ordinance does inevitably take effect,” a Lyft spokesperson told Reuters.
Lyft and Uber had originally planned to stop operations in Minneapolis starting May 1.
The city council voted 10-3 in March to ensure the city’s rideshare drivers are paid the minimum wage following protests by rideshare and delivery drivers on Valentine’s Day this year demanding fair pay and working conditions.
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(Reporting by Disha Mishra and Surbhi Misra in Bengaluru; Editing by Janane Venkatraman)