Uber wants users to help it fight City Hall

Uber is enlisting riders in its campaign to block Mayor Lori Lightfoot’s proposal for higher taxes on shared rides, especially for trips that involve the downtown area.

Starting Monday, Uber customers in Chicago began getting in their receipts a message advising them of the threatened tax hikes and providing a link for more information. The link invites riders to email their alderman and to use Twitter to direct their remarks to City Hall.

Uber public relations manager Harry Hartfield said he believes it’s the first time the ride-hailing firm has used receipts in a lobbying effort, although the company has been aggressive in opposing local taxes and fees. It has sued the village for Skokie over a ride-sharing fee, for example, and Hartfield said company lawyers believe it could make a similar legal argument in Chicago’s case.

Lightfoot’s proposal “is somewhat confusing. Fees are changing in different ways and in different areas. Our goal is to make sure our riders know the fees are increasing.”

Hartfield said Uber does not oppose taxing its services in principle, but wants such levies to be fair to and target legitimate public concerns such as congestion or raising money for public transportation. He said the mild wording on the receipts is a “deliberately soft message’’ to educate riders. “We don’t think the best approach at this time is to publicly attack the city, attack the mayor. We have the same goals. We don’t think the mayor’s plan is the best way to do it.”

Uber

Lightfoot’s rideshare tax hikes are projected to add $40 million to city coffers, most of which is earmarked for reducing the estimated $838 million deficit. About $2 million would be set aside for public transit.

The mayor has justified her surcharge as a way to discourage congestion, as many vehicles enrolled in Uber and Lyft carry single riders downtown and to the Near North and West sides. Her proposal would raise the flat fee on those rides from $1.25 to $3 for trips taken weekdays from 6 a.m. to 10 p.m., when traffic is heaviest. Shared rides in the downtown area would see a 60-cent surcharge.

In its comments on the proposal, Uber has noted that all customers riding solo will pay higher taxes regardless of the time, origin or destination of the trip. It has emphasized that customers on the South and West sides, regions Lightfoot wants to help, will be hit. And it notes that there are no proposed hikes for taxi trips, which also add to traffic.

“There is still time for the City to come up with a better approach,” reads one email sent to some customers. “Tell the Mayor why you oppose paying more for your ridesharing trips in Chicago.”

Below that was a link to “Tweet at the city.”

Mayoral aide Lauren Huffman said in response, “Despite the claims made by the companies, the mayor’s congestion policy is focused on cutting down the exorbitant downtown traffic congestion which has increased at the same time ride-hailing companies have exploded in Chicago.” She said the plan would “incentivize more sustainable modes of transportation and require ridesharing companies who are contributing to the congestion challenges in our city to pay their fair share.”

Lightfoot wants the City Council to approve the proposal as part of the proposed 2020 city budget.

Under her plan, the city’s ground transportation tax on all solo trips outside the downtown region would increase by 88%, to $1.13. For shared rides, the tax would be lowered 11.6% to 53 cents.

Hartfield said most Uber patrons get a receipt, although the company lets riders opt out of receiving one.

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