Chicago approves visitors congestion tax on ride-hailing providers

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FILE PHOTO: Lori Lightfoot speaks after being sworn in as Chicago’s 56th mayor by Decide Susan E. Cox throughout an inauguration ceremony at Wintrust Enviornment in Chicago, Illinois, U.S. Could 20, 2019. Information/Kamil Krzaczynski/File Picture

CHICAGO (Information) – A proposal to fight visitors congestion in Chicago by rising taxes on sure ride-hailing journeys received metropolis council approval on Tuesday as town and experience suppliers accused one another of penalizing low-income passengers.

Mayor Lori Lightfoot’s plan will increase town’s tax on single-passenger journeys and lowers the tax on shared rides, whereas imposing new surcharges on weekday rides within the downtown space to boost $40 million for the fiscal yr that begins Jan. 1.

Trip-hailing corporations Uber Applied sciences Inc (UBER.N) and Lyft Inc (LYFT.O) claimed the transfer would largely harm low-income residents.

Earlier this month, town’s first feminine African-American mayor accused Uber of attempting to withstand any type of regulation by stirring up racial tensions.

Uber rejected her claims and mentioned different proposals it provided would spare lower-income communities in Chicago’s South and West sides from greater prices, whereas elevating extra money for town’s funds.

Information’ evaluation of knowledge that ride-sharing corporations are required to open up to Chicago reveals fares for shared rides within the metropolis have risen considerably over the previous yr, whereas fares for single riders have remained secure.

The worth will increase for shared rides predominantly have an effect on Chicago’s low-income neighborhoods the place most of carpool rides are booked, the evaluation confirmed. Over this era of elevated fares, carpool ridership fell.

Reporting by Karen Pierog; Enhancing by Chris Reese and Richard Chang