FILE PHOTO: Lori Lightfoot speaks after he was sworn in as Chicago’s 56th mayor by Judge Susan E. Cox at a ceremony at Wintrust Arena in Chicago, Illinois, usa, on 20 May 2019. REUTERS/Kamil Krzaczynski/File Photo
CHICAGO (Ap) – A proposal aimed at tackling the traffic congestion in Chicago by increasing the tax on a particular trip-from travel and won city council approval Tuesday as the town and are driving service providers accused each other of, and to punish the low-income passengers.
Mayor Lori Lightfoot’s plan to increase the city’s tax on single-passenger trips, and reduce the load on the shared drives, while the imposition of new fees from Monday to Friday for journeys within the city to raise $40 million for the fiscal year that begins Jan. 1.
Ride-hailing companies Uber Technologies Inc. UBER.(N) and Lyft, Inc. (“LYFT.(O) said that the move would mainly hurt low-income residents.
Earlier this month, the city’s first female African-American mayor, has accused Uber of trying to resist any form of regulation, and stirring up racial tensions.
Uber denied the claims and said that the alternative proposals are offered, it would save lower-income communities in Chicago’s South and west sides of the higher costs, while raising more money for the city’s budget.
Reuters’ analysis of the data is that ride-sharing companies are required to disclose to the Chicago show, the fares for riding in the city is considerably increased in the last year or so, while the rates for some of the riders have remained stable.
The prices for shared rides, mainly the impact on the city’s low-income neighborhoods where the majority of car journeys are made, the analysis found. During this period of increased fares, car pooling, ridership went down.
Reporting by Karen Pierog; Editing by Chris Reese and Richard Chang