01:29 PM EDT, 03/15/2024 (MT Newswires) -- (Updates with Lyft's ( LYFT ) comment starting in third paragraph)

Uber ( UBER ) and Lyft ( LYFT ) will stop offering service in Minneapolis starting May 1 after the city's council voted in favor of an ordinance that would guarantee drivers a minimum wage, according to media reports Friday.

The move was vetoed by Mayor Jacob Frey, but the city council voted Thursday to override the veto.

Lyft ( LYFT ) confirmed to MT Newswires the company would be shutting down operations in Minneapolis when the law takes effect May 1.

The company called the ordinance "deeply flawed" and said it would make the rides unaffordable for the majority of Minneapolis residents.

"The drastic drop in rides means the thousands of drivers who rely on Lyft ( LYFT ) for earnings would ultimately make less, creating an unsustainable situation for our customers," the company said.

Uber ( UBER ) did not immediately respond to a request for comment.

Lyft ( LYFT ) shares declined 2.5% in recent Friday trading, and Uber ( UBER ) dropped 1%.

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