Portland council reviews Uber and Lyft fee increase for transportation fund

May 19, 2025 | Portland, Multnomah County, Oregon


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Portland council reviews Uber and Lyft fee increase for transportation fund
In a recent meeting of the Portland City Council Finance Committee, significant discussions centered around proposed increases to fees for ride-sharing services, specifically Uber and Lyft. The committee is considering raising the current fee from $0.65 to $2.00 per ride, a move that aims to generate additional revenue for the city. This proposal has garnered support from several council members, including Councilors Mariano, Nova, Dunfee, and Murillo, who co-sponsored the initiative.

The proposed fee increase is viewed as a potential source of funding to address the pressing needs of the Portland Bureau of Transportation (PBOT). Councilor Novick emphasized that while the fee increase could help balance the general fund budget, it is primarily intended to support PBOT's operational requirements. The discussion highlighted the importance of ensuring that these funds are used effectively within transportation programs, contributing to a "safe and functional transportation system."

However, some council members expressed concerns about the impact of such a fee increase on everyday Portlanders. Councilor Murillo pointed out that the fee would ultimately be passed on to riders, potentially burdening those who rely on ride-sharing services. The committee acknowledged that while the fee increase could generate approximately $2.5 million for PBOT, it raises questions about cost recovery and the fairness of imposing additional charges on individuals.

The meeting also touched on the need for an ordinance change to clarify how the funds from the ride-sharing fee can be allocated. Councilor Novick noted that any adjustments to the fee structure would require careful consideration of legal implications and the intended use of the funds.

In addition to the ride-sharing fee discussions, the committee reviewed various budget proposals and cuts, including a significant reduction in the police budget and reallocations within city departments. The ongoing dialogue reflects the council's efforts to balance revenue generation with the need to maintain essential services while being mindful of the financial strain on residents.

As the committee prepares for the final budget approval on May 18, the discussions from this meeting underscore the complexities of funding city services and the importance of considering the broader implications of fee increases on the community. The council's next steps will involve finalizing the budget and addressing any unresolved issues related to the proposed fee changes.

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