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Taking from the richer to pay for buses and trains for the poorer
The sharing economy is frequently held up as a potential solution to reduce greenhouse gas emissions in cities worldwide. Yet research suggests ride-hailing with companies such as Uber and Lyft may do more harm than good with people jumping in a car rather than hopping on a bus, causing more pollution and congestion. The US city of Chicago is using taxes on rides with these firms to help fund improvements in public transport
PROBLEM
Research suggests ride-hailing may increase pollution and congestion in cities
SOLUTION
Since 2016, Chicago has been adding extra cents to each ride and investing the money in public transport
KEY QUOTE
The ride-hailing fee could be improved by incorporating variable pricing that would lead to a higher fee for trips that have the most negative impact on the city’s transportation network
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