The city of Eugene has cleared the way to begin charging a 50 cent per trip fee on Uber, Lyft and taxis.
Eugene has regulated ride-hailing services since 2018, when it passed licensing requirements and created an oversight program.
When it did so, the city council gave the city manager the authority to create a per trip fee on top of what companies pay to comply with other requirements, but the city decided not to collect the fee at the time.
In addition, the existing ordinance only allowed the city to spend the money it collected on the cost of the oversight program.
On Monday, the Eugene City Council voted to delete that section of code, allowing them to spend the revenue generated from ride-hailing services on whatever they want.
City Manager Sarah Medary said the change is an essential part of maintaining a balanced budget.
“As a reminder, the 2023-2025 adopted budget included an ongoing revenue strategy that included a 50 cent per trip fee that is estimated to generate about $350,000 a year into the general fund,” she told city council Monday.
Uber and Lyft both submitted letters opposing the change. They argued it removed transparency and the city should have rules requiring their fees be spent on passenger vehicle-related issues.
In its letter, Uber also argued increasing the cost may lead to fewer people using ride-hailing companies, negatively impacting drivers.
“We know that new fees (and especially new fees of this size) can lead to a decline in the use of rideshare,” an Uber representative wrote. “This means fewer Eugene residents and students will be able to afford rideshare and fewer earning opportunities for rideshare drivers.”
The city council did hold a public hearing on the issue in September, but no one testified.
The city has also said it hopes to continue using the funds on the oversight program, which costs more than when it was first established, and other transportation needs.
