Uber and Lyft are pulling their services out of Minneapolis after the city council passed an ordinance that will increase drivers’ pay. Both companies say they will no longer offer ridesharing services in the city when the ordinance goes into effect on May 1st.

The ordinance, which guarantees drivers a minimum rate of $1.40 per mile and 51 cents per minute while carrying a rider, was first passed last week but later vetoed by Minneapolis Mayor Jacob Frey. The City Council voted 10–3 to override the veto on Thursday.

Lyft spokesperson CJ Macklin calls the ordinance “deeply flawed,” as the rates were determined before the state released a study detailing how much drivers would have to be paid to earn Minneapolis’ $15.57 per hour minimum wage. The study analyzed over 18 million trips taken in 2022. It found that drivers could earn the city’s minimum wage — while also accounting for health insurance, paid leave, and retirement savings — with rates of $1.21 per mile and 49 cents per minute, lower than what the city council approved. “We support a minimum earning standard for drivers,” Macklin says, “but it should be done in an honest way that keeps the service affordable for riders.”