States, rather than local governments, have largely assumed responsibility for regulating ride-hail companies. Many states regulate how ride-hail companies can be taxed, and limit cities’ abilities to enact taxes and add fees to ride-hailing operations. Municipalities are thus constrained in their ability to leverage ride-hail services to generate revenues [1]. States vary in the extent to which they limit local control over ride-hail fees and taxes; Lehe et al. [2] examined the U.S. market and created a taxation taxonomy of five regimes: the first was a “hands-off” approach, the second, a tax-free regime to enact prohibit local and state taxes, the third, a state tax only system, fourth, a revenue sharing agreement based on state tax distributed to local jurisdictions, and lastly, a local options where local governments may levy a tax regulated by the state.

Clark and Brown found that repurposed parking spaces to accommodate ride-hail pickup and dropoff and falling parking occupancy reduce on-street and off-street parking occupancy revenues, which are often municipally-owned [3]. A study of New York City area airports found single-digit percentage reduction in parking demand attributable to the introduction of ride-hailing services [4].