Republican Governor Charlie Baker signed the nickel fee into law this month as part of a sweeping package of regulations for the industry.
Ride services are not enthusiastic about the fee. "I don't think we should be in the business of subsidizing potential competitors," said Kirill Evdakov, the chief executive of Fasten, a ride service that launched in Boston last year and also operates in Austin, Texas.
Some taxi owners wanted the law to go further, perhaps banning the start-up competitors unless they meet the requirements taxis do, such as regular vehicle inspection by the police.
"They've been breaking the laws that are on the books, that we've been following for many years," said Larry Meister, manager of the Boston area's Independent Taxi Operator's Association.
The law levies a 20-cent fee in all, with 5 cents for taxis, 10 cents going to cities and towns and the final 5 cents designated for a state transportation fund.
The fee may raise millions of dollars a year because Lyft and Uber alone have a combined 2.5 million rides per month in Massachusetts.
(Score: 2, Disagree) by cykros on Tuesday August 23 2016, @08:31PM
Those licensing requirements are archaic and in need of being revamped drastically.
The taxi drivers aren't wrong, but Uber is right to be acting first and asking for forgiveness later. They've got the funds and in many cases public support now to really play a big role in fix the broken system. They should take their blows for breaking the rules, but I haven't seen them as being unprepared to do so, and in the end, I think the rules will end up breaking before they do.