Uber and Lyft Rides in DC Will Be More Expensive by the Fall
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Your Uber and Lyft rides in Washington, DC, are about to get a bit more pricey in coming months.
On Tuesday, The DC council unanimously approved an additional 5% tax on ride-hailing services, like Uber and Lyft, starting October 1 to increase funds for the metro system. DC currently puts $23 million annually to the metro system, and with this tax, the council is hoping to increase that to $25 million. Uber and Lyft rides will go from a 1% tax to 6%, regardless of destination.
Both Uber and Lyft expressed their concerns over this tax increase.
“While we’re disappointed that City Council voted to increase taxes across the board without providing measures to incentivize the use of shared rides, Lyft remains focused on providing the best transportation experience possible,” a Lyft spokesperson said in a statement. “We look forward to continuing to work with DC passengers and drivers to provide affordable and reliable rides throughout the District.”
Uber believes UberPOOL users should be taxed at a lower rate because the pool service helps to reduce road congestion and environmental impacts. DC Council Member Brandon Todd believes these taxes will benefit DC residents as a whole but will address the rideshares suggestions.
In 2 weeks, I will introduce a bill that eliminates the flat tax on rideshare. DC residents made it clear that they care about this issue & we need to give it the attention it deserves. We should have a hearing & let advocates, stakeholders & residents make their opinions known.
— Brandon T. Todd (@CMBrandonTodd) June 26, 2018
Uber said in a statement the company applauds Council Member Todd for announcing his intention to address this issue and for joining DC Mayor Muriel Bowser in calling for a tiered tax structure.
This ride-haling tax is part of a $178.5 million spending plan to benefit the city’s metro system. DC is also increasing taxes on several items including alcohol, commercial properties and hotels.
Featured image by Jaap Arriens/NurPhoto via Getty Images.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.