Ride-share companies just dropped uber cash to topple a ballot measure meant to fund San Francisco’s Muni system.
Uber just spent $750,000, while Lyft put up $65,000, on a campaign against Proposition L, “The Community Transit Act,” a ballot initiative that would levy a gross-receipts tax on ride-share companies to help restore transit service across the city.
The Aug. 29 donation was spotted in a Tuesday filing to the city’s ethics commission. Kat Siegal said she and other Proposition L proponents have long braced for an onslaught from Uber’s bank account.
“We’re certainly concerned about it, but it doesn’t change our strategy,” Siegal told The Standard. “We know we can’t compete with them in terms of money, but we’re going to win through people power and conversation with voters.”
Indeed, while the CommunIty Transit Act campaign has only about $120,000 to its name, according to recent city filings, it does have volunteers by the busload. They can be spotted at farmers markets touting their slogan: “Fund the bus!”
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Transit activists placed the measure on the ballot in the wake of a projected $227 million budget deficit at the San Francisco Municipal Transportation Agency, which runs Muni, plans bike lanes, and oversees taxis. In May, the agency announced it would reduce discounts for Muni riders and increase parking fines to lessen the deficit.
Proposition L’s boosters fear Muni’s ailing budget will lead to staff reductions and service cuts. The measure would raise an estimated $25 million from ride-share companies to stem the fiscal bleeding.
“No on L” spokesperson John Whitehurst said his campaign unites ride-share drivers against what they call a “new ride-share tax that lacks transparency and fails to address Muni reforms” with “unintended consequences.”
“The No on L campaign is proud to receive funding from Uber, which provides invaluable transportation services to riders of every income level at times and locations where Muni never or reliably goes,” Whitehurst said.
Siegal thinks she knows what Whitehurst means by uniting drivers. A message going out to Uber drivers reads, “San Francisco Drivers — we need your help!” and aims to recruit them in a survey to talk about how higher Uber fees may affect them.
But, Siegal notes, gross-receipts taxes — like the one proposed under Prop. L — apply to the company, not to rides.
If Uber hikes its ride fees, she said, “that’s their choice.”