As ride-hailing services like Uber continue to gain popularity and draw attention for their impact on traffic congestion and other urban ills, cities around the world, from Washington, D.C., to São Paulo, are moving toward the inevitable next step: targeted fees.
This comes as no surprise. Recent research shows that these services are contributing to declining public transit ridership and an increase in private vehicles on the streets. However, new taxes and fees should do more than just raise revenue. They have the potential to make cities more livable and transport more sustainable. If ride-hailing services are taxed, this revenue must be allocated carefully, in ways that improve urban mobility as a whole.
