New Ride-Sharing Fees Are Here for 2020 1/2/2020

AAA World Article

A new year means new predictions for what's ahead. One thing that all travelers can predict without much guesswork is that we'll be seeing higher Uber and Lyft fees in 2020. In fact, many new fees for ride-hailing services officially kicked in around the country on Jan. 1. It will be important to know about these new fees if you'll be using ride-hailing apps to get back to the 'real world' now that the holidays are over. Let's take a look at what's happening in cities across the country.

San Francisco's new tax on ride-sharing companies officially kicked in on Jan. 1. The new tax applies to all ride-sharing companies that offer rides that begin within city limits. Companies like Uber and Lyft are now officially on the hook for a tax totaling 3.25 percent of each private ride. The rate drops down to 1.5 percent for all shared rides or rides using zero-emission vehicles.

Chicago is introducing a new tax system for ride-sharing companies that actually determines the rate based on time and location. All private rides that take place between the hours of 6 a.m. and 10 p.m. in Chicago's downtown core will have a $3 tax added. All private rides outside of that zone will have a tax of $1.25 tacked on. Any shared rides in the downtown area will also be subjected to a tax of $1.25 instead of the full rate.

Travelers using Reagan National Airport and Dulles International Airport are going to see a jump in fees. The previous surcharge per ride when riding with services like Uber and Lyft was $4. That fee is now jumping to $5.

The biggest change of all may be the absence of Uber and Lyft from one major American city. Both ride providers decided to pull out of Phoenix completely after officials in the Arizona hub increased ride fees. That means that Uber, Lyft and other ride-sharing companies will not be operating at Phoenix Sky Harbor International Airport in 2020. However, the good news is that we have a few weeks until that's a done deal.

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