Philadelphia mayor fires back at Uber and Lyft over rideshare tax plan: 'Don't believe the ads'

Philadelphia Mayor Cherelle Parker stood by her proposal to tax ride-sharing companies like Uber and Lyft to generate revenue for the city's school district despite opposition from the companies.

During a news conference Wednesday, Parker reiterated her plan to a tax of $1 per ride in Philadelphia amid a $300 million budget deficit. She originally proposed the plan last month after a proposed city budget threatened to cut at least 340 school staff jobs.

Uber and Lyft have pushed back on the proposals, warning that extra costs will be passed onto customers. Uber also began an ad campaign urging the city council to vote against it.

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Mayor Of Philadelphia Cherelle Parker called out ride-sharing company backlash over her proposed ride tax. (AP)

Parker addressed the criticism during the conference and dismissed the companies' complaints.

"Don't believe the ads that you see out there," Parker said.

She also added, "The city of San Francisco, the home of Uber and Lyft, they’ve had a rideshare tax since 2020. So, wait a minute. This is 2026, the industry it’s thriving, it’s bustling, and we’re excited about business thriving and bustling in the city of Philadelphia. 

"We are open for business here. But how dare you tell me, as mayor of this city, to tell the people in this city, that we cannot and should not enact what is one of the most limited powers that we have. And that is to decide how we will drive revenue to the School District of Philadelphia."

Parker said the new tax on ride-sharing would generate $48 million in new revenue and help halt cuts to school-based positions. However, Superintendent Tony Watlington has suggested some positions may still be cut, though far fewer if the tax is enacted.

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Cherelle Parker originally proposed a $1 tax on ride-sharing rides in March. (Gilbert Carrasquillo/GC Images via Getty Images; Toby Melville/Reuters)

"If these taxes are enacted and approved by our council, this will be the largest new recurring local revenue source for the School District of Philadelphia since we enacted the sales tax and the cigarette tax," Parker said. "And that was $120 million in annual revenue from the sales tax and $83 million, respectively, and I think our children and the School District of Philadelphia are worth it."

In a comment to Fox News Digital, Lyft public policy manager Angeline Jefferson warned about the effect the tax could have on low-income riders.

"The proposed $1-per-ride surcharge — layered on top of the existing 1.4% excise fee — is, at its core, a regressive tax that will disproportionately harm riders in low-income areas and transportation deserts. Moreover, a per-ride tax is a narrow, incomplete fix to a structural problem. We encourage the council to examine a broader set of revenue tools that could generate more sustainable funding," Jefferson said.

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Ride-sharing companies like Uber and Lyft have released statements against the proposed tax. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)

Uber spokesperson Jazmin Kay called out Parker's assumption that ride-sharing companies can simply absorb the cost of the new tax.

"This is a consumer tax, plain and simple. Uber does not have the option to absorb this tax," Kay told Fox News Digital.

"The law requires it to be collected from the passenger, and this $1 regressive tax would come directly from riders, as it does anywhere in the world that charges this kind of tax, just like a sales tax. This will raise the cost of rides, making it more expensive for Philadelphians to get to work, medical appointments, school and other essential services."

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If approved by the city council, the tax would go into effect Jan. 1, 2027. There is no scheduled date for a vote on the proposed budget yet.