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NEW YORK (CBSNewYork/AP) — As the MTA announces plans to increase fares twice over the next three years, a new report finds more customers are opting for rideshare services, which is also causing increased congestion. MTA officials announced Wednesday that they’ll be raising fares by 4 percent next year and another 4 percent in 2021. Officials say the hikes are necessary to stave off budget deficits and decreased ridership. “As we stated in November and as we stated in February, the MTA requires new sources of sustainable revenue for operations and for capital,” said Chief Financial Officer Robert Foran. “Again, those are forecasted. They’re still subject to our need, they’re subject to public hearings and they’re subject to board action.” Just the thought of another fare hike has MTA riders upset. “I think it’s absurd,” one rider said. “I don’t think we’re seeing an improvement in service.” “The fares increase, but service stays the same or gets worse,” said another. Part of the reason for the increase in lower ridership appears to be competition from rideshare services like Uber and Lyft, CBS2’s Janelle Burrell reported. According to transportation consultant Bruce Schaller’s study The New Automobility , the effects of ridershares is not only impacting the use of public transit, but it’s also causing more congestion. The report shows that about 60 percent of people who use the services in large cities would have used public transportation or walked, biked or not made that trip if rideshare services weren’t available. MTA Chairman Joe Lhota said the transit system is experiencing a nationwide trend of fewer riders. He said it’s due to a combination of service, for-hire vehicles and fare evasion. (© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)

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As MTA Seeks Rate Hike, Report Shows More Opt For Ridesharing Services