New York City residents are bracing themselves for a double whammy of ride-sharing fees as a new congestion pricing plan is set to take effect this summer. Taxi passengers have been quietly paying a congestion fee for years, and now they are facing the prospect of an additional fee that could add over $5 to many rides. This move has left drivers concerned about the impact on their incomes as they fear a potential crash in earnings.
The current system already imposes a $2.50 congestion fee on every yellow cab ride since 2019, while trips using app-based car services like Uber and Lyft incur a $2.75 fee. The upcoming phase of the congestion pricing plan will introduce an additional fee of $1.25 on traditional cabs and $2.50 on app-based rides, potentially increasing the total fee to $5.25 for rides passing through certain parts of Manhattan.
Scheduled to kick in by mid-June, the latest phase of congestion pricing will also implement a $15 toll hike for all cars entering Manhattan below 60th Street during daytime hours. While cabs will not have to pay the $15 fee, riders will bear the brunt of the smaller additional ride fees for trips that traverse the affected zones.
Drivers in the industry, still grappling with the aftermath of the pandemic, are voicing their concerns about the multiple layers of fees. Destiny Maduka, a veteran cab driver, expressed the added pressure may drive him to leave New York altogether. Another driver, Abdul Isaiah, highlighted the lasting impact of the 2019 surcharge, pointing out the loss of customers and ongoing complaints from riders.
Despite the discontent among drivers and passengers, ridesharing giant Uber has endorsed New York City’s congestion toll proposal, labeling congestion as detrimental to business and advocating for robust public transportation options to improve daily commutes. The MTA reported significant revenue from the current cab fees, which have been allocated to upgrading mass transit services.
Ultimately, the congestion pricing plan, signed into law in 2019 by the New York State Legislature, aims to generate $1 billion annually to fund enhancements to the city’s public transit system. As the city gears up for the implementation of the additional fees, both drivers and passengers are left to navigate the financial implications of the evolving transportation landscape.