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Congestion pricing in New York city: Effects on ride-hailing and transit

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  • Zhang, Yueshan
  • Sang, Yanling
  • Wu, Manxi

Abstract

On January 5, 2025, New York City implemented the Central Business District Tolling Program (CBDTP), which includes a $1.50 per-trip charge on for-hire vehicles operating within the Central Business District. This study examines the effects of the per-trip charge on Uber, Lyft, and subway ridership using a two-way fixed effects design. Leveraging Lyft’s temporary $1.50 rider credit in January 2025, we isolate platform-specific responses to this $1.50 charge. We find that Uber trips declined by up to 6%, while Lyft trips increased by 2–5% during the subsidy period and remained slightly elevated afterward. At the aggregate level, overall ride-hailing volume fell by 0.5–1.5%, while subway ridership rose by approximately 1%. Heterogeneity analyses show that the response was concentrated among short trips and low-fare rides, which declined by over 9% and 35%, respectively, while longer and higher-fare trips were largely unaffected. We also find that base fares and platform revenue per trip increased, especially for Uber, while driver pay gains were limited. These findings highlight how the CBDTP per-trip charge and platforms’ pricing strategies jointly shape ridership patterns and prices.

Suggested Citation

  • Zhang, Yueshan & Sang, Yanling & Wu, Manxi, 2026. "Congestion pricing in New York city: Effects on ride-hailing and transit," Transportation Research Part A: Policy and Practice, Elsevier, vol. 208(C).
    • Handle: RePEc:eee:transa:v:208:y:2026:i:c:s0965856426001072
    DOI: 10.1016/j.tra.2026.104966
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    References listed on IDEAS

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