Manhattan “on the Rocks” as Businesses Onerous Ice Congestion Pricing
New Tolling Program Debate: a Curse or Blessing For Small Businesses, Commuters & FHV Drivers
After a lot of bumps in the roads, lawsuits-after-lawsuits and protests for and against it, the New York City, has, of late, embarked on the long-waited congestion pricing, brushing aside the elevated costs of living of the people from all strata of life.
The controversial move came at a time when the New Yorkers are already burning from a series of living expenses while small Manhattan-based businesses are the worst as they are still reeling from the adverse impact of the pandemic and have now been facing so many high charges and fees to keep their business operational.
Also, uncertainty looms among the city-goers and taxi and app-based drivers in the For-Hire Vehicle (FHV) industry since no one knows how much the congestion tolling to hit in the days ahead. Many believe this toll collecting move is just a cash grab – another tax that will hurt mainly working people.
This tolling plan prompted tens of thousands of commuters to choose alternative mode of transportations like city busses and Subway but which is not safe at all. This correspondent visited the city’s Subways that witnesses unprecedented commuters which never seen before.
President-elect Donald J. Trump termed the congestion pricing as a disaster for NYC and said this is a massive business killer and tax on New Yorkers, and anyone going into Manhattan. “I will TERMINATE Congestion Pricing in my first week back in Office. Manhattan is looking businesses, not looking to kill business,” said Mr. Trump, who takes back Office on 20th Jan, 2025.
Congressional Republicans from New York have backed President-elect Donald Trump’s support saying they have vowed to kill the tolls.
Metropolitan Transportation Authority (MTA), which runs New York’s sprawling subway, bus and commuter rail systems, claimed the congestion pricing is working while Mr. Janno Lieber, MTA CEO, said, “We’re wasting a ton of money, literally billions of dollars, according to business leaders,”
MTA’s congestion pricing kicked off on Jan 5, 2025 with newly charging passenger vehicles $9 to access Manhattan below 60th street during peak hours in an effort to ease congestion and raise funds for the city’s transit system. The extra per-ride surcharge is .75 for taxis and black car services and 1.50 for Uber and Lyfts. During peak hours, small trucks and charter busses will be charged $14.40, while large trucks and tour busses must pay $21.60.
The haul from congestion pricing will go largely to the MTA, to improve mass transit. It will raise $500 and $800 million a year.
MTA officials project at least 80,000 commuters will switch from driving to public transportation. But the public transport subway is not safe as the recent series of death incidents are the evident.
“I used to drive to Manhattan for my workplace which is within the purview of the tooling zone. Now i can’t afford to pay extra expenses. I opt for subway to get to work but the subways are not safe,” Mr. Jason Prescott, who was waiting for a train in the Kew Gardens Subway Station, told this correspondent.
Referring to the recent death incidents in the city’s subways, Mr. Jason said, “it is not worth it… I still have to pay insurance for my car which I stopped driving. Now the real problem is I am taking the subway early in the morning risking my life.”
Sazzad Hossain, a small business entrepreneur who operate his apparel business in Manhattan, said the business people did not come out completely from the impact of the covid. He said his business had been suffering a lot as a result of the business-related exorbitant fees and charges now the congestion pricing is putting extra pressure and going to hurt his business more.
Mr. Deepak Shrestha, an Uber driver, said he liked the concept of congestion pricing saying its gonna be beneficial for app-based drivers. “If we are stuck in traffic, we can’t make money.”
The Nepalese driver, who drive Uber for four years, said he believes congestion pricing could be bad for those who drive to Manhattan for businesses and workplaces. “Who is going to pay $9?…it might yield good results for them in the long run as far as unbearable traffic gridlock is concerned,” he added.
Md. Moinul Hossain, a driver who work with a base, said It will affect taxi and app-based drivers and their families. “More charges leads to more frustrations for the driver who already counts so many charges and the living costs getting more costlier.”
Mr. Alamgir Kabir, an Uber driver, said it seems UBER is takes almost 50% of our earning. More charges less opportunities. I feel like the city, Transportation Network Companies (TNCs), Taxi and Lemonime Commission (TLC) and insurers are in a rase to increase charges for us.”
“They are supposed to charge the taxi and app-based drivers,” said Mr. Tanvir Laskar, Chief Executive Officer of Grand Transportation Services.
Talking to this correspondent, executives of American Transit Insurance Company (ATIC), which provides specialized coverage for livery and commercial auto and has over 65% market share, said there is a controversy over the congestion pricing. “There is an argument for it and argument in it….nothing does not change anything when it comes the wellbeing of drivers…None of the arguments properly representing the drivers. “No one care if a driver works 18 hours a day,” they pointed out.
“Nothing gonna change the fate of drivers requesting them to be mandated for anything…historically nothing worked out for the drivers and nothing will work out for them unless they are empowered.”, the ATIC sources said and favoured commodifying services and service value of drivers and giving them a sort of leverage for their empowerment for the sake of long-term sustainable development of drivers and their families.
The congestion pricing idea began in 1952, and gained traction in the early 2000s. But there’ve been a lot of turmoil between critics and supporters of the MTA’s tolling plan. Singapore began congestion pricing in 1975 and Stockholm in 2006, while London in 2003.
Kamal Ahmed
Mr. Ahmed is an insurance consultant, journalist at large, with experience at local & foreign news agencies and journals. He is actively involved in involved in finance, insurance and technology
