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New Uber, Lyft competitor in NYC mistakenly failed to charge sales tax

Mount Equity Group Tokyo, Japan > News > Business > New Uber, Lyft competitor in NYC mistakenly failed to charge sales tax

A new ride-sharing app that advertised lower prices than Uber and Lyft launched in New York City over the weekend — but was forced to raise fares after admitting Tuesday that it was not charging some riders sales tax.

Co-op Ride, which has billed itself as an ethical alternative to Uber and Lyft, said that offering lower fares to some users by not charging sales tax was an honest mistake. The snafu comes days after the group received a favorable write-up in the New York Times on Friday. 

“We are looking into this and have contacted the tech provider,” co-founder Ken Lewis told the Post, adding that the co-op would pay any missed sales tax out-of-pocket rather than hitting riders with surprise charges.  “We will investigate.” 

On Tuesday afternoon, Co-op Ride offered a Post reporter using an iPhone a $29.14 ride from the Metropolitan Museum of Art to City Hall. The fare included a $0.77 black car fund charge and a $2.75 congestion fee — but not the required 8.875-percent local and state sales tax. With the taxes included, the ride would have come out to about $31.72. 

Co-op Ride says it will allow drivers to work for it as