It looks like using a ride-hailing service in Chicago might get more expensive soon. A downtown Alderman in the Windy City has proposed a cap on ride-hailing vehicles and increasing the current fee on every ride booked on Uber, Lyft and Via, according to a Chicago Sun-Times report.
- An ongoing movement to put tighter restrictions on ride-hailing services in Chicago seems to be gaining steam.
- Uber officials argue that the proposal unfairly targets ride-hailing services for the city’s congestion issues.
- The city is looking for new revenue sources in the face of a huge budget deficit.
Uber officials say ride-hailing services are being unfairly targeted for congestion pricing in Chicago. (Photo: Uber)
Alderman Brendan Reilly, who presides over Chicago’s 42nd district downtown, is seeking to put a cap on ride-hailing services and increase the 72-cent flat fee on every ride booked on ride-hailing vehicles, as a way to fight congestion. Chicago’s new mayor, Lori Lightfoot, has already floated the idea of implementing a congestion charge in the city, in part to address a $383 million budget gap.
The push to crack down on ride-hailing has actually been brewing for some time in Chicago and has been an ongoing point of contention for the Metropolitan Planning Council and a number of other Chicago transportation groups. The proposal mirrors a similar cap on ride-hailing in New York City, which has been extended indefinitely, after initially being planned for only a year.
Uber officials argue that the proposal would negatively impact Chicago residents living on the city’s South and West sides, who don’t have access to reliable public transportation and tend to be neglected by taxi services.
Representatives with the popular ride-hailing company also contend that the 1,400 Uber vehicles on the road during typical morning rush hours only account for roughly 3% of all 3 miles driven.
WHY THIS MATTERS
The idea of imposing stricter guidelines on ride-hailing services in Chicago, which mirrors the measures taken by officials in New York, could prompt other cities to do the same. Soon, we may all be paying more for ride-hailing.