The Los Angeles County Metropolitan Transportation Authority is considering taxing ride share companies like Uber and Lyft in hopes of seeing less of them on the road, and more people taking trains and buses. This comes after a 20 percent drop in Metro ridership over the last five years.
“One of the ways we could potentially reduce congestion is to make sure that Uber and Lyft are charging fares that are closer to their fare market value because right now they are underpricing their services,” said Joshua Schank, chief innovation officer at LA Metro.
On Thursday Metro’s board will vote whether to approve a study that would take a close look at Uber and Lyft’s impact. Depending on the results, the transportation authority will consider various ways to tax the company such as a per ride fee.
The Los Angeles County Metropolitan Transportation Authority’s board voted today to further explore congestion-relief pricing and new mobility fees for ride-share companies in an effort to reduce traffic and encourage public transit. Both efforts are a part of Metro’s “Re-Imagining of Los Angeles County: Mobility, Equity and the Environment” plan, which is designed to guide policies and changes needed to sustain Los Angeles, Metro officials said in a press release.
Metro approved today a 12- to 24-month feasibility study to evaluation potential models and locations to test congestion-relief pricing, which uses tolls to more effectively manage traffic flow. Upon completion of the feasibility study, Metro’s board will consider a pilot program to test the concept