Jul 1, 2022 - News

Coloradans now paying more for Uber, Amazon and DoorDash

Illustration of a frowny face with an upside down Amazon arrow as the mouth.
Illustration: Shoshana Gordon/Axios

As of July 1, Coloradans will pay more for deliveries from Amazon, DoorDash and UPS, and extra for rides with Uber and Lyft.

What's happening: The new fees are part of a 2021 law signed by Gov. Jared Polis and authored by Democratic lawmakers to generate $3.8 billion for transportation projects and greenhouse gas reduction initiatives in the state.

  • Delivery orders will include a 27-cent fee.
  • Ridesharing will carry a 30-cent fee.
  • Car-share services like Turo will add a $2 fee.

Why it matters: The new revenues aim to transform transportation funding in Colorado, as the Denver Post reports. But it comes at a tough time, as consumers penny-pinch amid high gas prices and rising inflation.

Of note: One price hike — a 2-cent fee on each gallon of gasoline — is being delayed until 2023.

  • A separate 2-cent fee on diesel will still take effect in July, however.

By the numbers: The average consumer will pay about $28 a year for all fees once they take effect, one legislative analysis found.

  • That will increase, since the delayed fee on a gallon of gas will eventually rise to 8 cents.

What they're saying: "The delivery and rideshare fees should have been at least delayed too, given that those are things that add costs for everyday Coloradans," said Michael Fields, president of the Advance Colorado Institute, a conservative think tank that is suing to block the new law because it didn't get voter approval.

What to watch: Republicans are hammering Democrats for the fee increases in the 2022 midterm elections, but it's unclear how much consumers will revolt.

  • In terms of the political stakes, Polis told The Post that he's not worried. "We wanted to really update the funding mix for roads and bridges to deal with the changing nature of road usage," he said.
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