03:14 PM EDT, 03/15/2024 (MT Newswires) -- (Updates with Lyft's ( LYFT ) comment starting in third paragraph, Uber's ( UBER ) statement starting from the sixth 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 firm 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.

Meanwhile, Uber's ( UBER ) Senior Director of Public Affairs, Josh Gold, told MT Newswires the company was "disappointed" with the decision.

"We are disappointed the Council chose to ignore the data and kick Uber ( UBER ) out of the Twin Cities, putting 10,000 people out of work and leaving many stranded," Gold said.

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

Price: 17.43, Change: -0.39, Percent Change: -2.16