Uber, Lyft Could Gain From New York City Congestion Pricing They Championed

What To Know: The new congestion toll program is intended to reduce traffic congestion, improve air quality and raise funds for the city's mass transit system. Most drivers entering Manhattan’s Congestion Relief Zone, south of 60th Street, will be charged a $9 toll during peak hours while rideshare services will be charged significantly less $1.50 per vehicle. 

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According to a report from the New York Post, Uber and Lyft have spent millions of dollars lobbying in favor of the congestion toll program and stand to benefit from its rollout.

According to the New York Post report, Lyft contributed $18,500 in each of the last four years to Gov. Kathy Hochul's campaign, which championed the new congestion tolls. The Post also reported that Uber spent $2 million between 2015 and 2019 to promote congestion tolls. 

Why It Matters: Uber and Lyft are passing the additional fee to the customer so the increased tolls will not directly affect the companies' bottom lines. The companies could also benefit from reduced traffic leading to faster service and from drivers switching to ridesharing services in order to avoid higher tolls. 

Lyft announced it is refunding the new $1.50 congestion fee in the form of a credit for future trips for all rides completed in the month of January. 

Josh Gold, a Uber spokesman, told the New York Post that the company was "early supporters of congestion pricing" but "government can't continue to raise prices and fees on New Yorkers and expect no consequences."

The full impact of congestion tolling on the rideshare services will become clearer as future ridership figures come in. 

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