In a strategically lobbied request for more fees and taxes, Uber is trying to destroy the NYC taxi strangle hold by raising prices.
How can this be you ask?
Simple, Uber can make driving in NYC too expensive for taxi drivers while retaining the same price for their UberPOOL service, they can transfer passengers from one competitor to them.
The latest price increase comes from the "congestion surcharge" fee that all taxis and rideshare companies will need to pay for any car entering the city south of the 96th street interchange in Manhattan.
The new fee will add an additional $2.75 per ride to Uber and Lyft cars coming into the city, and $2.50 for taxis. UberPOOL will cost an additional $0.75 for each passenger's fare. This surcharge will raise the cost of a ride, and NYC residents are used to the expensive transport costs of their city.
The new law was passed as a late addition, but it is included in 2018 budget which is part of the fiscal year starting April 1st, 2018 and ending March 1st, 2019. The law was signed by NY Governor Andrew Cuomo minutes before the deadline, on Friday night. While the "congestion surcharge" was passed on time will only take effect in 9 months, which means that all visitors to NYC will pay this extra fee from January 2019.
Based on city data, the new surcharge will increase city income by $421 million a year. This money will go to fund the NYC Metropolitan Transportation Authority (MTA).
Naturally, taxi drivers are not happy with this new surcharge. Understandably so, since Uber claims to have lobbied this into the budget by spending $100,000 on their congestion coalition plan. The reason that Uber took up this endeavor was to boost their UberPOOL service, taking into account that an additional $0.75 would be a boon to their service when compared to the $2.75 UberX ride. Since UberX drivers also perform Uber POOL rides, there is no real loss of these drivers. The only underdogs, again, are the tax drivers.