Proposed Chicago tax would 'surcharge the surge charge' imposed by Uber and Lyft for peak-time rides
Image from Shutterstock.
It isn’t just companies like Uber and Lyft and their drivers who would benefit from premium pricing at times of high demand for on-call ride-sharing services, if a possible new Chicago tax is approved.
Under a proposal by two Chicago aldermen, the city would “surcharge the surge charge” imposed by ride-hailing companies during peak-demand periods, reports the Chicago Tribune (reg. req.).
The basic tax, which also applies to traditional taxis, would be $1 per ride, if the company allows passengers to use apps to arrange a ride. However, if the price of the ride doubles, the private companies would pay $2. And the tax would be upped to $3 if the price triples, the newspaper explains.
In contrast, the tax on taxi rides would be limited to $1 by city ordinance.
