Chicago the latest U.S. city to approve congestion tax

December 03, 2019
The Future of Mobility
Policy More...
by Chad Goldberg
Average importance

While cities like Los Angeles and San Francisco are studying the effects of a New York-inspired toll system to combat urban congestion, Chicago is specifically targeting ride-hailing companies and users with its pricing plan. Though it's not the first city to implement a ride-hailing-specific tax, it is the first city we've seen attempt to shape ride-hailing behavior with a tiered pricing model that differentiates between shared and single rides, charging more for the latter. Boston is considering a similar tiered model while also extending cost savings to zero-emission vehicles. Clients should expect more cities to implement these fees in a way that benefits both pooled travel and low-emission vehicles.

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