L.A. Metro Authority Considers Study To Mitigate Rideshare Congestion

Hailing an Uber or Lyft ride might cost a little more in L.A. County.

The Metro Transportation Authority is considering a plan to add fees to ridesharing companies like Uber and Lyft. L.A. City Councilman Paul Krekorian says companies like Uber and Lyft have been profiting off taxpayer fund streets.

"This was a way for Silicon Valley billionaires to get rich off of increasing congestion and taking passengers out of transit," Krekorian says.

However, Curtis Kalin with Citizens Against Government Waste says a new tax on ridesharing companies is an attack on innovation.

"Politicians see a new and vibrant industry as a cash cow. They say, 'Oh good, this thing is successful, let's put some taxes on it and raise some money' and inevitably, that money goes into the General Fund as opposed to a specific thing," said Kalin.

San Francisco has already begun taxing rideshare companies, increasing costs for riders. Kalin says, taxpayers should be concerned over the possible new tax.

"The revenue generated won't be either a) won't be suffiecient for the projection, or, it'll be misused or wasted on the other end," Kalin said.

Photo: Kris Ankarlo

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