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

portrait of professional woman

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 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 Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight