Uber, Lyft Are Costing The MTA Money, Officials Say
NEW YORK (CBSNewYork) -- The MTA says ride-sharing programs like Uber and Lyft are costing them money -- and it's not because fewer people are riding the subway.
The MTA receives $.50 cents for every passenger that gets into a yellow cab -- a fee that Uber and Lyft drivers are not subject to, WCBS 880's Alex Silverman reported.
Instead, ride-share programs pay a sales tax, with only a fraction of a percent going to the MTA. This causes the MTA's bottom line to suffer, as Uber and Lyft continue to pick up a growing percentage of the market share.
"A fare would have to be $133 dollars for the three-eights of one percent that we get, to equal the $.50 that we get on any medallion cab," MTA chief financial officer Bob Foran said.
The MTA says they are in talks with lawmakers to issue legislation that would require ride-share companies to pay the $0.50 fee.
"If we could have our way, every one would pay the $.50 drop fee," Foran said.
The MTA said Thursday fare hikes are needed for mass transit options in the upcoming year.