Chicago approves traffic congestion tax on ride-hailing services

CHICAGO, Nov 26 (Reuters) - A proposal to combat traffic congestion in Chicago by increasing taxes on certain ride-hailing trips won city council approval on Tuesday as the city and ride service companies accused each other of penalizing low-income riders.

Mayor Lori Lightfoots plan increases the city's tax on single-passenger trips and lowers the tax on shared rides, while imposing new surcharges on weekday rides in the downtown area to raise $40 million for the fiscal year that begins Jan. 1.

Ride-hailing companies Uber Technologies Inc and Lyft Inc claimed the move would largely hurt low-income residents. (Reporting By Karen Pierog Editing by Chris Reese)