Uber and Lyft are funding opposition efforts in a San Francisco ballot initiative aimed at increasing funding for the city’s public transit system.
Proposition L is an initiative (formerly the Public Transportation Act) and would create a new tax on ride-hailing companies, such as Uber, Lyft, and Waymo, and use those funds to restore transit services throughout the city. Currently, the SF Municipal Transit Association, which runs the Muni system, faces a deficit of more than $239 million annually, starting in 2026. That may lead to termination of jobs and activities.
Under Prop L, the city would levy a tax on corporate receipts—or gross income—that it earns within San Francisco starting January 1. The Comptroller’s Office estimated that the measure would give Muni an additional $25 million in funding each year.
It’s no surprise that rideshare companies, which have struggled to reach and maintain profitability, don’t mind losing even more of their hard-earned profits. Opponents say the tax will make rides more expensive, make services inaccessible to passengers, and cause drivers to lose their income.
Uber spent more than $764,000 in campaign contributions, while Lyft contributed more than $103,000, according to campaign disclosures. In accordance with Gate of SFUber also asked its San Francisco drivers to publicly protest the move.
An Uber spokesperson was quoted as saying Fast company A spokesperson for No on L. A Lyft spokesperson for L. A Lyft said the move will only make rides more expensive and cost drivers money, which will impact low-income communities that don’t have access to the Muni system and rely on rideshares.
“Rideshare riders already contribute $20 to $30 million annually in Muni fares alone, and more fares are expected soon,” a Lyft spokesperson said. “This proposal does not solve the Muni funding issue, but it makes it harder for people to live and work in the Bay Area.
An opposing website expressed the same opinion.
“Proposition L will raise San Francisco’s taxes and make it more expensive to live here without solving Muni’s problems,” the opposition group, SF for Muni Accountability and Reliable Service—No on Prop L, wrote on its website. “We need a real plan to save Muni with funding and accountability, not more taxes.”
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