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Outgoing Mayor Says Yellow Cabs Should Be Exempt From NYC Congestion Pricing. How About Other TLC Cars?
Outgoing Mayor Bill de Blasio reiterates implementing congestion pricing should be a priority due to climate crisis & traffic. Also says yellow cabs should be exempt, but how about other TLC cars?
AutoMarketplace.com NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace.com on YouTube ▶️
In one of his last events as NYC mayor, Bill de Blasio invited London (UK) Mayor Sadiq Khan to the event via video conference. Mayor de Blasio had some very interesting things to say, outside of pushing the State to act quicker, about NYC congestion pricing implementation. It was no coincidence that Mayor Khan of London, a City which has had congestion pricing for years, was on the call.
“We're going to talk about congestion pricing, two things that [are] near and dear to Mayor Khan and London has done so well. And it's my great pleasure to bring to all New Yorkers from across the pond, Mayor Sadiq Khan.” - Mayor Bill de Blasio
I’ve written several times about ongoing NYC congestion pricing implementation politics and what that may mean for not only the NYC for-hire industry, but New Yorkers in general. From bad traffic to flooded subways, everything seems to tie back to NYC congestion pricing and when and how it’s going to be implemented.
As a quick reminder, in 2019 New York State approved a congestion pricing plan that would toll drivers entering the busy parts of Manhattan, often referred to as the Central Business District (CBD). The final toll amount is still up in the air, but is thought to be above $10 when a car enters the CBD, defined as starting at 60th Street and extending to the tip of lower Manhattan (excluding the West Side Highway & FDR). As could be expected “exemption politics” has taken center stage now. In other words, several people, communities and organizations are now making arguments on why that their cars should be exempt from congestion pricing or be subject to lower fees. Some have a point in my opinion, especially the for-hire vehicle (FHV) sector whose arguments include:
FHVs reduce congestion via using a single car to transport multiple people to multiple destinations 24/7, also discouraging private car ownership in NYC
FHVs are already subject to congestion-related taxes
FHVs would face prohibitive fees as they often go in and out of the CBD multiple times per day, which may also kill a lot of trip demand for FHVs
As I wrote in another piece a few months ago.
“…it’s worth mentioning that for-hire cars in NYC are already subject to congestion taxes, paid for by passengers ($2.50 for yellow cabs, $2.75 for other for-hire services)…Remember the higher a fare, the less likely a passenger is going to want to take an Uber/Lyft, even if the reason for the increase is unrelated to the Apps business decisions. For example, if a passenger had to pay $10 to $15 more to go from the Brooklyn to TriBeCa, that presumably would kill a lot of trip demand. - AutoMarketplace
Are Medallion Politics & Exemption Politics Both At Play?
In a previous piece published in September, I wrote the following:
As the yellow cab medallion crisis continues to make headlines, one thought that also crossed my mind was whether those politics could leak into congestion pricing exemption discussions. For example, Manhattan has historically been the domain of yellow cabs and it wouldn’t surprise me if the medallion industry lobbies for a congestion toll exemption for yellow cabs, BUT NOT for other TLC-plated cars. It would be a way to try to take market share back by effectively pricing out app-based companies (i.e., yellow cabs could offer cheaper fares if they didn’t have to pay the congestion toll).
Uber and Lyft have actually been lobbying FOR congestion pricing as net net taking out private cars from Manhattan would likely benefit their businesses. However, if they find themselves in a position where “non-yellow cab” TLC cars (i.e., cars used on the rideshare apps) are subject to congestion tolling, but yellow cabs are not, I don’t see how that wouldn’t push multiple political dominos. Streetsblog writer and transportation expert Charles Komanoff didn’t mince words in a recent Op-Ed, implying yellow cabs should be giving preferential treatment (under the guise of a separate fee related to “idling time”) vs. ‘non-yellow’ TLC cars.
If the mayor truly wants to help the taxi industry, let him use his dwindling hours to throw his support behind my proposal to charge Uber and Lyft for their vehicles’ idle time in the taxi zone — a ready-to-go measure that will cut gridlock, generate revenue, combat economic inequality and help yellow cabs’ competitive position, in one stroke. - Charles Komanoff, transportation, cab and carbon expert
Given Uber and Lyft represent 78% off all FHV trips in NYC, either action, non-exemption from congestion tolling or a separate idling fee, could backfire where consumers and drivers may even start getting involved in demanding rideshare companies have exemptions. As Mayor-elect Eric Adams gets ready to take office in a few days, it’ll be interesting to see how this plays out.
Let us know your thoughts. Do you think yellow cabs will be exempt from congestion pricing, but not other TLC cars? Would you be in support of that? Why or why not?
AutoMarketplace.com NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace.com on YouTube ▶️
Yes for sure yellow cabs should be exempt from current congestion and future congestion chargers because their yellow madallions were counted and got the approval from department of environment and department of traffic and Nyc tlc and they paid billions of dollars to nyc and nys on other side unregulated unlimited 100k plus ride hailing’s companies causing all the mess in then nyc city it’s time to take action enough enough dear politicians and law makers of nyc