Looks like fees for ride-sharing services like Uber and Lyft could be on the rise. According to the Boston Globe, in an effort to help alleviate congestion on the city streets, Mayor Marty Walsh will be lobbying the idea with the state legislature to increase the fees. Back in 2016, a state law was passed that that a 20-cent fee for each ride Uber and Lyft complete – a dime from each fee goes to the city or town where the ride originated and the rest is split between the state and a special fund to help the taxi industry. (Don’t get us started on the taxi industry.)
Boston received around $3.5 million the first year the fees were dispersed in 2018.
Currently, the City of Boston does not have an amount for the fee to increase. The Globe goes on to report that other cities charge much higher fees – Chicago charges 67 cents a trip, and New York recently started a $2.75 fee for individual trips in part of the city.
Some studies believe that ride-sharing is actually contributing to traffic in the city. This reason is the main motivator for the proposal for higher fees.
As the Massachusetts law on ride-share service fees now reads, the companies pay the fees and bars Uber and Lyft from passing on the fees to its customers.