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Chicago Tribune
Chicago Tribune
National
John Byrne

Chicago cabs could charge 'surge pricing' under Emanuel plan

Oct. 15--Mayor Rahm Emanuel wants to let taxis charge higher "surge pricing" rates like ride-share companies, but only in the rare cases when riders hail the cabs using an online application.

The language outlining new fare standards for cabs was included in the annual revenue ordinance Emanuel introduced to the City Council this week as part of the 2016 budget process. It adds standard taxis to the code allowing higher rates that currently applies only to online car services like Uber and Lyft.

Riders who go to use a ride-share firm during bad weather, when walking out of a sporting event in a large crowd or at some other moment of high demand for the service are familiar with the surge, in which drivers can charge substantially more than usual.

Under rules set by the city, cabs can charge $1.80 per mile regardless of demand. Emanuel also wants to increase the fares for cabs by 15 percent under his budget, while hiking fees on taxis and ride-share companies to raise about $48 million. He also wants to open up the lucrative airport and McCormick Place convention center markets, currently the exclusive domain of taxis, a proposed change that has cabdrivers up in arms.

Allowing cabbies surge pricing wouldn't help them much immediately, because the vast majority of cab rides in Chicago are hailed by people standing at the curb rather than using a mobile app. Some cab companies do operate their own apps, but they aren't nearly as popular as the ride-share mobile hailing platforms.

That could change if the Emanuel administration follows through on a promise to develop a universal app.

During his tough re-election fight last fall, as his opponents sought the support of labor unions working with cabbies, the mayor backed an ordinance that required the city to seek bids to create an online system Chicagoans can use to call for a ride from a database of all cabs in the city rather than individual companies.

The bid process is still in its infancy, however. And Emanuel's moves to allow Uber drivers to pick up passengers at the airports has many cabdrivers convinced the mayor is trying to pull an end-run around the taxi driver fairness ordinance now that the election's over.

The City Council is set to vote on the revenue ordinance as part of Emanuel's budget package at its Oct. 28 meeting.

jebyrne@tribpub.com

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