Member-only story
Uber and Lyft Fund Opposition to San Francisco’s Proposition L
A contentious ballot initiative in San Francisco seeks to boost funding for the city’s public transit system by imposing a tax on ride-hailing companies like Uber and Lyft. The opposition, funded largely by these tech giants, argues that the measure will lead to higher fares and reduced earnings for drivers.
Introduction
The San Francisco Municipal Transit Association (SFMTA) is facing a significant deficit in excess of $239 million annually, starting from 2026. This has raised concerns about potential job cuts and service reductions within the city’s public transit system. In an effort to address this issue, Proposition L (formerly known as the Community Transit Act) aims to create a new tax on ride-hailing companies operating within San Francisco.
Proposition L would impose a tax on the gross receipts of these companies, with the estimated revenue expected to be around $25 million annually. This additional funding is intended to support Muni’s services and prevent further cuts. However, Uber and Lyft have chosen to fund opposition efforts against this ballot initiative, citing concerns about increased fares and reduced driver earnings.
