American cities are raking in much needed cash from ride-hailing services to pay for roads, subway signaling systems, taxi industry upgrades and other kinds of infrastructure. This could be one way to help fill the coffers. It seems to be working south of the border.
CHICAGO levels 65 cents per ride on Uber and Lyft; Massachusetts (Boston) – 20 cents; Portland – 50 cents; New York is thinking about a $2 to $5 charge per ride. This could generate up to $605-million annually for that city’s failing subway system.
CHICAGO officials estimate that ride-hailing companies have cost their city about $40-million each year in lost revenue from transit fares, parking fees, licenses and permits. The ride-hailing tax produced nearly $39-million for the city’s general fund in 2016, up from $100,000 in 2014. The 2017 revenue total is expected to reach $72-million.
<Photo above – NICO.BLUE/iSTOCK>