Mayor Lori Lightfoot said Thursday she is exploring the possibility of raising ride-hailing fees but applying the increase to solo passengers in congested areas.
Chicago currently imposes a “72-cent flat, fixed charge per ride booking” on Uber, Lyft and Via that “does not fully support the goals of equity and reducing congestion and greenhouse emissions,” transportation experts from the Metropolitan Planning Council and seven other groups have told the mayor.
They’ve advocated a higher fee in the congested downtown area with a heavy emphasis on passengers riding alone.
On Thursday, Lightfoot warmed to the idea as one of the “short-term, modest” recommendations she plans to make to tide the city over until a longterm study is done on how a more complicated and broader, London-style congestion fee might work in Chicago.
“What we know is that there is a lot of single-occupancy riding, if you will, particularly from the North Side into the Central Business District,” the mayor said, during a taping of the WLS-AM Radio program “Connected to Chicago,” to be broadcast at 7 p.m. Sunday.
“We definitely … are considering giving a break to those … who are using pool transportation and charging more for single occupancy rides.”
The mayor noted that the preponderance of solo riders on Uber, Lyft and Via has left “a lot of cars idling around” while waiting for the next call while parts of the South and West Sides remain “a bit of a transportation desert.”
“But those are also areas where there’s more car-pooling. So, what we’re looking at is ways we can incentivize folks to use the most environmentally friendly form of mobility,” she said.
For months, transportation experts have been engaged in a public and private debate about what a congestion fee should look like in Chicago.
Should it follow the trail blazed by Singapore, London and Stockholm by drawing a ring around the downtown area and slapping a hefty fee on every vehicle that crosses into the zone?
Or should it be done on a “dynamic, variable fee basis,” as the Metropolitan Planning Council suggests, based on type of vehicle, location, time of day, number of passengers and their ability to pay?
That’s what the study will determine, the mayor said.
“There are places like London, for example, that have been dealing with these issues for several decades,” the mayor said.
“We’re gonna take some incremental steps to address those issues ... But we’re also gonna ... look at what’s really driving our congestion issues all over the city, what have been the best practices of other cities — not just in the U.S., but across the [globe]. We want to get the best information we can that’s Chicago-specific but informed by the experiences of other municipalities across the globe.”
Lightfoot will deliver her first budget address — and outline the taxes she plans to raise to erase an $838 million shortfall — five days before the start of the Illinois Legislature’s fall veto session.
She needs to introduce a balanced budget without having any idea how much money, if any, she can count on from Springfield.
On Thursday, the mayor once again refused to rule out a property tax increase, calling it a “last resort” but the “one lever we can pull independently.”
During the radio interview, Lightfoot also talked about the possibility of imposing a new city sales tax on items purchased on the internet.
But like a sales tax on attorneys, accountants and other professional services, that requires authorization from the Illinois General Assembly that would be a long shot during the abbreviated veto session.
But like a sales tax on attorneys, accountants and other professional services, that would require authorization from the Illinois General Assembly likely to be a long shot during the abbreviated veto session.
Lightfoot said she has two priorities for the veto session: a casino fix and authorization to raise Chicago’s real-estate transfer tax on high-end home sales.
Now that the Illinois Gaming Board has punted on a revised tax for a Chicago casino, the mayor said she has been working with Gov. J.B. Pritzker and legislative leaders on a more reasonable structure.
“People recognize that we’ve gotta change the structure. Now, we’re just thinking about, how do we do that,” she said.
“We’ve got two vehicles that we’re looking at … They’re very different. But I feel like we’re in a good position headed into the veto session.”
