So what the hell happened?
1) A new surcharge for all journeys below 96th Street came into effect this week.
2) Separately both Uber and Lyft increased their pricing this week.
How much will this cost me?
In most cases an extra $3-4 per journey in total. For the average New Yorker that’s an increase in over $400 annually.
For journeys below 96th Street the surcharge works out at:
An extra $2.50 for every Taxi ride.
An extra $2.75 for every rideshare (or $.75 per carpool ride)
The exact Uber and Lyft rate increases have not yet been published but we expect the average trip to cost at least an additional $1-$2 on top of the surcharge.
What did we do to deserve this?
The surcharge money goes to the MTA and is designed to help pay for subway and other essential infrastructure improvements (some of which are blamed on rideshares).
The increase in Uber and Lyft rates is a direct response to the new legislation mandating a minimum earnings for drivers called ‘Driver Earnings Rule’, which mandates new per-mile and per-minute rates.
How much of my ride is now tax?
Good question – here’s an excerpt from Uber’s recent blog post:
“Currently, city and state governments require Uber to collect the following from the rider:
- 8.875% Sales Tax
- 2.5% surcharge for the NY State Black Car Fund
- As of February 2019: A NYS Congestion Surcharge of $2.75 (or $0.75 when it’s a carpool ride) on rides in Manhattan below 96th St
For the average New York City UberX ride (a $22 fare), riders can expect that over 20% of what they pay will go toward government-mandated taxes and fees.”