Uber and Lyft invested substantial sums to support the legalization of the new New York City congestion pricing – and they stand to make a killing now.
From 2015 to 2019, Uber allocated $2 million towards advocating for congestion pricing, with approximately $1 million directed to some of the city’s top lobbyists, the company revealed to The NY Post in 2019.
Since then, both Uber and Lyft have continued to hire influential lobbyists to press state and city officials, including Governor Kathy Hochul and the Metropolitan Transportation Authority, to approve the controversial tolling proposal, according to public records.
The exact amount spent by the companies on lobbying for congestion pricing remains unclear, as the lobbyists were involved in multiple issues, and public records do not specify the breakdown of expenses.
The ride-share companies did not provide The Post with a detailed breakdown—or even an estimate—of their lobbying expenditures.
Lyft, which also owns the CitiBike program, has made direct contributions to politicians advocating for the contentious plan.
Since 2020, Lyft has contributed more than $125,000 to state campaigns, including $18,500 over the past four years to Governor Hochul, who has pushed the plan forward after a temporary delay around election time, according to records.
The company also donated $10,000 in 2020 to then-Governor Andrew Cuomo, who supported congestion pricing during his tenure but now seeks to pause the initiative.
These expenditures appear to have been well-invested.
The growing ride-hailing industry—boosted significantly last year when the city lifted the cap on the number of for-hire vehicles—stands to gain greatly from the new surcharge. Critics argue that the surcharge is more affordable than the $9 fee for private vehicles to enter parts of Manhattan and the $2.90 fare for subway and bus riders.
The ride-hailing services will face an additional $1.50 surcharge for trips below 60th Street in Manhattan. However, these costs will ultimately be passed on to customers, much like the $2.75 “congestion fee” imposed on trips below 96th Street in 2019.
“This is corporate greed at its worst,” said Councilman Robert Holden (D-Queens), a vocal opponent of congestion tolling. “These companies will stop at nothing to rewrite the rules in their favor while leaving chaos in their wake.”
The new tolls, according to Nicole Gelinas, a senior fellow at the Manhattan Institute, align perfectly with Uber and Lyft’s business models, as they already charge premiums for access to Manhattan’s most crowded streets. Gelinas added that the companies’ customers would likely benefit from faster service and fewer cars on the road.
“The sudden sticker shock here won’t be felt by Uber and Lyft or their passengers, but by the regular driver,” she said.
Susan Lee, one of the plaintiffs in a series of lawsuits seeking to halt the congestion tolling, accused the for-hire vehicle industry of “pushing” for the tolling system and contributing to NYC’s congestion by adding approximately 100,000 vehicles to the streets.
“If the goal is to encourage people to use mass transit, then the new fee for for-hire vehicles should match the $2.90 cost of a bus or subway ride,” Lee stated.
Uber spokesperson Josh Gold explained that the company has long supported congestion pricing and continues to do so, but added, “Government can’t continue to raise prices and fees on New Yorkers and expect no consequences.”
Lyft spokesperson CJ Macklin reiterated his company’s support for congestion pricing and its potential benefits for the city but emphasized that it should be implemented fairly.
“Our industry has already been paying a congestion fee since 2019 that has generated more than $1 billion in revenue for the MTA,” he said. “We don’t think riders should be double-taxed, and we lobbied hard for them to be exempt from this new additional $1.50 congestion fee.”
{Matzav.com}