The ongoing implementation of congestion pricing in New York City has brought a surprising surge in business for yellow taxi drivers. According to newly released Taxi and Limousine Commission (TLC) data, yellow cab trips within the designated toll zone increased by 19% in January compared to the same period last year. This marks the best January for taxi drivers since the pandemic began. Meanwhile, rides with services like Uber and Lyft saw a slight dip of 3.4% in the same area.
Under congestion pricing regulations, yellow taxi passengers are charged a $0.75 surcharge for trips within the toll zone, while Uber and Lyft users pay a $1.50 fee per ride.
A Positive Sign for Cabbies
“We’re still in the early stages of understanding how congestion pricing affects TLC’s hardworking drivers, but it’s encouraging to see yellow taxi trips in the Central Business District increase by almost 20% compared to last year,” said TLC spokesperson Jason Kersten. “That’s good news for drivers who have endured challenges from both the pandemic and the medallion crisis. These drivers operate the vehicles that are synonymous with our city.”
The TLC’s “CBD taxi zone,” which aligns closely with the Metropolitan Transportation Authority (MTA)’s Manhattan congestion zone, charges tolls to vehicles traveling south of 60th Street. For many cab drivers, the increase in fares has been a welcome change.
Drivers Report a Boost in Business
Tursem Singh, a yellow cab driver for 27 years, shared his observations about the uptick in business. “We used to pick up like 15 to 18 fares, but now you could pick up like 20, 21 every day,” Singh said while working in the East Village. “I’m happy with that.”
Singh also suggested that expanding the congestion zone north to 96th Street could help further reduce Manhattan’s traffic issues and prevent increased double parking in areas just outside the toll zone.
For the yellow cab industry, which has faced a sharp decline in business over the last decade due to the rise of ride-share apps, this data is a rare bright spot. The value of taxi medallions, which serve as licenses for cab drivers, had plummeted from over $1 million to less than $200,000 at the lowest point of the medallion crisis.
Some Remain Skeptical About the Data
Despite the promising numbers, not everyone is convinced that congestion pricing is the sole factor behind the improved statistics. Bhairavi Desai, leader of the New York Taxi Workers Alliance, expressed skepticism.
“I think the TLC’s data is a bit skewed. I don’t think there’s any conclusive evidence here that congestion pricing has led to higher trip volume,” Desai said. She suggested the increase in trips might instead represent a rebound from changes made in 2022 when Uber began allowing users to hail yellow cabs through its app. Desai suspects Uber may have reduced the number of yellow cab trips assigned via its platform this time last year, and the current bump may simply reflect a return to normal.
Uber declined to comment when asked for a response.
Ride-shares Still Popular Citywide
While yellow cabs have gained traction within the toll zones, Uber and Lyft continue to dominate outside the CBD. TLC data shows that rides with the two companies increased by nearly 4% across all five boroughs in January compared to the same month last year.
Legal and Policy Challenges Loom
On the policy front, federal authorization for the congestion pricing program was revoked last month by U.S. Transportation Secretary Sean Duffy. The MTA promptly filed a lawsuit, arguing that the program achieves its intended goals of reducing traffic congestion in Manhattan and generating revenue for public transit. Federal officials have ordered the MTA to halt toll collections by March 21, but Governor Kathy Hochul has pledged to continue charging the $9 base toll for drivers until a court decision is reached.
Improved Traffic Flow and Changing Habits
Other taxi drivers have also reported increased fares since the congestion pricing initiative launched on January 5. New data from the MTA reveals faster travel times at crossings into Manhattan, improved bus speeds, and reduced congestion on busy streets like Canal Street.
“If I make money, I drive 10 hours. But if I don’t make money, I drive more hours,” explained Ernest Desanges, who has been driving yellow taxis since 1984. “[Now] I drive less because lots of people, they don’t take Uber, they take cabs.”
Source: Gothamist
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