City-Mandated Fare Increases Cause Concern for Ridehailing, Taxis

Photo via Joiseyshowaa/Flickr. 
Photo via Joiseyshowaa/Flickr.

Uber and Lyft riders can expect to see fares increase in Manhattan, due to a congestion pricing plan included in New York City’s newly approved budget, Slash Gear reports.

Rides south of 96th Street are set to have a surcharge fee of $2.75 per ride; shared rides, such as UberPOOL, will be surcharged at $0.75; taxis will also increase by $2.50 per ride.

The fee is supposed to help ease congestion in the city’s busiest areas, although critics argue it won’t decrease traffic.

In Seattle, the City Council is considering doubling the minimum fare per ride for ridehailing companies, according to King 5 News. Proponents argue it will ensure drivers are compensated fairly for their service; additionally, it will level the playing field for taxi drivers and ridesharing drivers.

However, one Uber driver told the news group that he fears the base fare increase from $1.35 to $2.40 per ride will discourage customers from using the service, and will ultimately decrease a driver’s take-home pay.

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.


Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

6 Takeaways from the 2018 International Car Rental Show

Technological solutions are finally moving from reality to theory, peer-to-peer platforms are being redefined, China has the biggest room for growth, while Sixt’s U.S. aspirations have only just begun.

The Irony of Customer Service in the Digital Age

Sure, any company would jump at the chance to use technology to reduce labor costs. But it also comes with some big, red, flashing warning lights.

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Job Finder: Access Top Talent. Fill Key Positions.