Chicago's Innovative Ride-Hailing Tax Approved

The Chicago City Council has approved a new budget that includes a new transit funding mechanism that could level the playing field for transit.

1 minute read

November 22, 2017, 11:00 AM PST

By James Brasuell @CasualBrasuell


Chicago Commute

f11photo / Shutterstock

"[T]he Chicago City Council approved Mayor Rahm Emanuel’s 2018 budget, including a new fee on ride-hailing trips to fund the CTA," reports John Greenfield.

Mayor Emanuel pitched the idea of a ride-hailing tax to help pay for transit back in October. The idea gained the support of the Chicago Tribune editorial board shortly after. Greenfield also voices support for the idea:

The ride-hailing tax represents a sensible approach to leveling the playing field for buses and trains in the wake of recent studies that found services like Uber and Lyft are increasing congestion in cities and reducing transit ridership. 

As for the details of the new tax, Greenfield has it covered:

The new tax will add a 15-cent surcharge to the existing city ride-hailing fee of 52 cents per trip, 67 cents total, next  year. The surcharge, which will affect Lyft, Uber, and smaller competitors, will be increased to 20 cents, to 72 cents total, in 2019. The city projects this fee will raised $16 million in 2018, which the CTA plans to use on infrastructure improvements, with $21 million expected in 2019.

The article includes more context for the decision and other details of the city's approved budget.

Tuesday, November 21, 2017 in Streetsblog Chicago

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

Overlapping highways

The state-sanctioned urbicide of Austin

People don’t kill cities. Freeways do.

September 8, 2026 - Benjamin Schneider

The Hoover Dam blocking the Colorado River. The river's water level is noticeably low. The cliffs surrounding the blue water are brown and jagged.

US to reduce Colorado River water deliveries to Mexico

A new Colorado Treaty amendment reduces Mexico’s Colorado River water allocation by 250,000 acre feet.

September 11, 2026 - The Arizona Republic

Skyscrapers in Jersey City.

New Jersey’s second-largest city bans standalone data centers

Jersey City will continue to allow co-location facilities, such as those meant for research institutions that store their own data.

September 4, 2026 - The Cool Down

A New Jersey train approaches people waiting at the station.

Amtrak not solely to blame for New Jersey commuter rail's unreliability, report finds

A new study from the Garden State Initiative found that NJ Transit’s budget grew 20% across a 4 year period, but reliability declined significantly over the same period.

September 15 - Mass Transit

A tall, gray power plant billows smoke into a blue sky.

EPA erases limits on planet-warming pollution from power plants

Under Monday’s plan, power plants would still have some limits on how much mercury, arsenic and other contaminants they can emit.

September 15 - New York Times

A white RAPID bus. The lower half is light blue, and says RAPID in purple text. The bus is half visible, appearing from the left side of the image.

Phoenix announces new on-demand transit service, more frequent RAPID buses

Both new services will launch in October, and are part of Phoenix's Project Effective Access Solutions for Easing Congestion.

September 15 - KJZZ

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.