Chicago, USA — Chicago’s congestion tax hike is reported to take effect last Monday, raising the fare for Uber and Lyft’s services.
An Uber, Lyft or Via ride will see a surcharge of $1.25 for a solo trip, which is up from the previous tax of $0.72 per ride. You’ll pay slightly less in taxes now if you take a shared ride ($0.62 instead of the previous $0.72). A single-passenger ride downtown between the hours of 6:00 a.m. and 10:00 p.m. on weekdays will cost riders an additional $1.75 per trip and $0.60 for a shared ride.
These numbers give Chicago the highest rideshare fees in all of America.
The taxes, which were passed last year as part of Mayor Lori Lightfoot’s 2020 budget, are aimed at reducing downtown traffic congestion. Congestion in the downtown area has “skyrocketed in recent years”. Moreover, more than 25,000 trips occur during weekday morning rush hour alone. Furthermore, part of the revenue generated from the new taxes will go into improving Chicago’s public transportation system.
“We don’t have a rush hour. We have a rush day,” Mayor Lightfoot said. “It’s a challenge for mobility, it’s a challenge for pollution, it’s a challenge for the stress on our infrastructure.”
The city is hoping the increase in the transportation tax on rideshares will generate $40 million.
However, a statement from Lyft said that it “shows a total misunderstanding of what causes congestion.”