🕵️ NYC Congestion Pricing: 4 More Congestion Pricing Scenarios & Our House View
There are 4 additional scenarios included in a subchapter of the NYC congestion pricing Environmental Assessment (EA). One exempts both Taxis & FHVs 🤔. We share our house view ahead of hearings
AutoMarketplace.com NYC covers the NYC for-hire transportation industry and general automotive-mobility news. Check out AutoMarketplace on YouTube ▶️
We got a fair amount of incoming communications and comments on the back of our most recent article on NYC’s congestion pricing proposals and the potential impacts to the NYC for-hire transportation (aka TLC) industry.
Interestingly, one very well read subscriber brought something to our attention - there are actually 4 MORE SCENARIOS included in a subchapter (🕵️), which are not really discussed at length in the main Environmental Assessment (EA) executive summary (i.e., the one that’s getting all the media attention). These “subchapter scenarios”, or iterations on the headline Scenarios A to G, are worth taking a look at and can be found on page 46 of this MTA report (Subchapter 4A of the Central Business District (CBD) Tolling Program Environmental Assessment (EA) 👀).
We’ve also updated our simplified TLC-specific congestion pricing infographic below to include these subchapter scenarios. In the same subchapter (page 45) a model output is also shared on how NYC taxi & FHV demand might be impacted by congestion pricing (we’ve included both screenshots below).
“If taxis and FHVs are charged for each trip, the demand for their service would decline, particularly in New York City, reducing trips and better meeting the Project objectives, but creating new direct costs and/or potential job insecurity. In response to concerns expressed during the public outreach process with respect to the anticipated effects of the Project on both taxi and FHV drivers, additional analyses were conducted. Specifically, analyses were done to assess the revenue and traffic effects of implementing Tolling Scenarios A and D with a cap of once per day for taxis and FHVs (like Tolling Scenarios B and F) and implementing Tolling Scenario D with both taxis and FHVs exempt from the toll. In the following tolling scenarios, the revenue objectives of the Project would be maintained.”
- Subchapter 4A of the Central Business District (CBD) Tolling Program Environmental Assessment (EA)
Updated Congestion Pricing Infographic
AutoMarketplace.com’s House View
Below we share our current opinion(s), ahead of the public hearings, on congestion pricing in Manhattan’s CBD as it relates to the NYC for-hire transportation industry.
🚕 Yellow Cabs should be ❌ EXEMPT ❌ from additional congestion tolling on all STREET HAND HAILS ✋. They will continue to pay the $2.50 congestion surcharge and $0.80 flat taxes discussed in our previous article. The medallion debt restructuring and City guarantee must be considered.
◼️ FHVs & all e-hails (whether for a yellow cab, green taxi or other FHV) should be treated EQUALLY . It’s also technically very difficult to allocate a flat daily congestion toll(s) on multiple trips per day on an FHV going in and out of Manhattan CBD. We recommend a MAXIMUM flat $0.80 increase to the existing surcharge per trip. In other words the current $2.75 would go to a maximum of $3.55 per trip, but the surcharge could not increase by more than 10% every 5 years (or some formulation like that). No additional congestion tolling should be added to this surcharge. (Scenario D3 is closest to this).
The TLC industry needs and deserves 👓 clear regulatory visibility for the next several years. It has been one thing, after the next ⏭️, after the next ⏭️ and it’s becoming increasingly difficult to operate in the NYC for-hire transportation industry. The industry needs the visibility from not only the Taxi & Limousine Commission (TLC), but from all government entities, from NYC Council to the MTA.
Th TLC industry directly and indirectly employs 100,000s of New Yorkers, and provides core and essential services. Once clear regulatory visibility is given, it will allow investment to flow into the market and that will facilitate not only increased driver earnings and opportunities, but an industry that can attract human capital to it.
As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.
REMINDER: Be sure to sign up for the upcoming congestion pricing hearings that start tomorrow, Thursday, August 25th. To sign up and/or submit comments for those hearings click 👉 here.
AutoMarketplace.com NYC covers the NYC for-hire transportation industry and general automotive-mobility news. Check out AutoMarketplace on YouTube ▶️
To the authors {s} let's face it if the congestion fee is charged to both fhv's and yellows, fhv wins, and you know it , stop the game , if the congestion fee is charged to fhv and not yellow, yellow wins, don't pretend to think you are aligning yourself fairly if you want both not to be charged, period!!!!