A top mayoral aide on Thursday urged the Chicago City Council to finally sign off on a long-delayed taxi fare hike, the first substantial increase since 2016, arguing it is the only way to keep cabs on the streets. Mayor Brandon Johnson quietly introduced the ordinance last September, but it has gone nowhere in committee, leaving drivers and medallion owners to watch operating costs climb while they wait for relief.
Under the mayor's proposal, the flag pull would stay at $3.25 for the first one-ninth of a mile, but riders would see new and higher add-ons. Passengers would pay a $2.50 rush-hour surcharge for trips between 3:30 p.m. and 7 p.m., a $1 overnight fee from 8 p.m. to 6 a.m., and higher per-mile and time charges, moving the per-one-ninth-mile increment from 25¢ to 31¢ and the time component to 25¢ for every 36 seconds instead of 20¢, as reported by the Chicago Sun-Times. The measure was introduced in the middle of last year's budget fight and, as the Sun-Times noted, has been stuck in committee for months.
Business Affairs and Consumer Protection Commissioner Ivan Capifali told the Chicago Sun-Times that the taxi industry "has a lot of value in Chicago" and that City Hall wants to "make sure that they survive," pressing aldermen to bring the ordinance up for a vote. Industry leaders are just as blunt. John Moberg, president of Checker, Yellow and American United Cab, told the paper that rideshare apps and the pandemic gutted downtown business and that rising insurance and maintenance costs have left many drivers struggling just to stay on the road.
Why Drivers Say They Need a Raise
Chicago's cab business was long anchored by a medallion system that once looked like a golden ticket. The Washington Post reported medallions in the city sold for roughly $350,000 at their peak. Then came ride-hailing apps and a post-pandemic slump, and the value cratered. Company filings and industry reports show medallion collateral values plunged into the low tens of thousands and below, according to Medallion Financial's 2019 10-K, leaving many owners with big loans tied to assets that no longer come close to covering them.
What’s Next
The proposal still needs City Council approval before any new meter rates show up on the dash. Aldermen are expected to weigh driver safety, equity and what it will mean for riders' wallets before they vote. The debate is playing out just as the city rolled out a congestion surcharge on rideshare pickups this month, which NBC Chicago reports could shrink the price gap between app-based trips and regulated cabs, and as the Department of Business Affairs continues outreach with the taxi sector through initiatives such as the Taxicab Excellence Awards, highlighted in its BACP newsletter.
For riders, the change would likely mean slightly pricier short trips and nights out. For drivers and medallion owners, those extra cents per mile and added surcharges could function as a lifeline. It will be up to City Council committees to decide whether Chicago's regulated taxi industry gets the fare boost that the Johnson administration and cab operators insist it needs.
