Chicago taxi fares are set to rise for the first time in a decade following approval by the City Council’s Committee on License and Consumer Protection. The measure, backed Monday with a single dissenting vote, aims to support the struggling taxi industry, which city officials say has been severely impacted by the growth of ride-hailing services like Uber and Lyft.

The proposed fare increase, introduced last fall by Mayor Brandon Johnson, would raise rates by approximately 20% to help taxi drivers cope with rising operational costs, including insurance, vehicle maintenance, and fuel prices. The plan maintains the initial “flag pull” charge at $3.25 for the first one-ninth of a mile but increases other charges. For example, the per-distance rate would rise from 25 cents to 31 cents for each additional one-ninth of a mile, and the time-based rate would increase from 20 cents per 36 seconds to 31 cents per 45 seconds.

Under the proposal, new fees would also apply during peak and late-night hours: a $2.50 surcharge for rides between 3:30 p.m. and 7 p.m., and a $1 surcharge for trips from 8 p.m. to 6 a.m. Additionally, shared ride rates would increase—for trips between O’Hare Airport and Downtown or McCormick Place, fares would rise from $24 to $30; the Midway-to-Downtown/convention center route would increase from $18 to $22; and shared rides between O’Hare and Midway airports would go from $37 to $45. The cleaning fee for cabs after unruly or intoxicated passengers would double from $50 to $100.

During committee discussions, Alderman Brendan Reilly, who cast the sole dissenting vote, expressed sympathy for the taxi industry’s difficulties but raised concerns about enforcement of existing regulations. He cited frequent instances where drivers refuse to activate their meters or “pull the flag” to signal availability, a violation carrying a proposed fine increase from $100 to $1,000. Business Affairs and Consumer Protection Commissioner Ivan Capifali acknowledged the challenges, noting that only five investigators oversee roughly 3,000 taxis, and was unable to provide enforcement statistics. Reilly questioned whether driver noncompliance undermines support for the fare hike.

North Side Alderman Bennett Lawson welcomed the increase in the cleaning fee but suggested rebranding it, and reminded colleagues that a separate $1 fuel surcharge, which triggers when gas prices exceed $5 per gallon for a month, would remain in effect. With gasoline prices rising, this additional fee could soon be reinstated, further raising costs for taxi riders.

Separately, the committee approved the issuance of provisional city licenses to 253 establishments—including restaurants, bars, and bowling alleys—with ancillary liquor licenses, allowing them to install video gambling terminals while awaiting state approval from the Illinois Gaming Board. This move is intended to generate additional revenue, which the Johnson administration argues is critical amid ongoing budget challenges.

The full City Council is expected to consider the taxi fare increase on Wednesday. If approved, the adjustment marks a significant shift aimed at sustaining the city’s taxi services amid competition and economic pressures.