Since the launch of New York City’s congestion pricing toll program on January 5, 2025, more New Yorkers appear to be opting for Yellow Cab New York rides, according to transportation officials.
New data from the NYC Taxi and Limousine Commission (TLC) indicates a 10% rise in taxi trips in the week of January 5-12, 2025, compared to the same period in 2024. Commissioner David Do shared this update during a City Council oversight hearing on February 10, discussing the impact of congestion pricing on the NYC taxi industry.
During that one-week period, 511,376 yellow cab rides were recorded in the Central Business District (CBD), also known as the congestion pricing zone—up from 461,821 rides in the same timeframe last year.
While it’s still early to determine the long-term effects, this increase in NYC taxi trips offers an interesting counterpoint to concerns about congestion pricing’s financial impact. The new toll structure imposes a 75-cent surcharge on taxi fares, while rideshare services like Uber and Lyft now face a $1.50 congestion fee when traveling in the zone south of 61st Street in Manhattan.
How Will Congestion Pricing Impact Brooklyn Car Service and NYC Car Service?
Council Member Selvena Brooks-Powers, chair of the Transportation and Infrastructure Committee, raised concerns that the added toll costs could result in higher fares for passengers. However, Commissioner Do noted that, so far, ridership has increased rather than decreased, at least for Yellow Cabs in New York.
“We’re still gathering data, but in January alone, we saw a 10% increase in NYC taxi trips compared to the previous year,” Do stated.
While it remains uncertain whether this growth is directly linked to congestion pricing, some Brooklyn car service drivers and NYC car service providers may benefit if customers shift away from rideshare platforms due to rising costs.
Rideshare Companies See Slight Decline in Trips
Unlike NYC taxis, for-hire vehicles (FHV) from rideshare companies like Uber and Lyft have experienced a 1% decline in trips, according to Do. The commissioner emphasized that this fluctuation could be due to normal market trends rather than congestion pricing itself.
Meanwhile, taxi drivers have greater flexibility in choosing their routes, with some favoring trips into the CBD due to reduced traffic congestion. “Drivers are finding that with congestion pricing, they can complete trips faster and move through the area more efficiently,” Do added.
Looking Ahead: The Future of NYC Taxis and Car Services
As congestion pricing continues to evolve, the MTA and NYC Department of Transportation are closely analyzing how the new tolls impact both taxis and for-hire vehicle services.
Passengers have already been paying between $2.50 and $2.75 in congestion fees when traveling below 96th Street, but this new pricing model introduces additional costs that could shift customer preferences between NYC taxis, Yellow Cabs, and Brooklyn car services.
For now, yellow cabs in NYC appear to be benefitting from the changes, but transportation experts will need more data to determine whether this trend will continue.
