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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) by cykros on Tuesday August 23 2016, @08:33PM
They're called liquor licenses. If there were too many, places would have to stop just selling PBR and America because there'd be too much competition from those selling drinkable beer to try to edge into the market.