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Why This New Jersey Town Is Subsidizing Its Residents’ Uber Rides

Oct 04, 2016

Uber (uber) is giving New Jersey commuters rides on the government's dime.

The town of Summit, New Jersey recently announced a partnership with Uber to help decrease parking congestion at the local train station. They're beginning with a 6-month pilot program that officially began on October 3. The town's residents can request Uber rides to and from the Summit train station, as long as the pick up/drop off destination is within the city limits.

The pilot will be limited to about 100 commuters that will be chosen based on an online application. It could be extended to more people if the program goes well. The program meant to put off building a new parking lot or garage, which a Summit press release states would cost taxpayers $5 million over 20 years. With the new Uber program, anyone with a resident parking pass can get up to two free rides per weekday between the hours of 5 a.m. and 9 p.m. For those without a resident parking pass, each ride costs $2.

This isn't the first time that Uber has partnered up with a local government. Fortune reported last month that both Uber and Lyft have entered into a partnership with the Massachusetts Bay Transportation Authority to offer subsidized rides to people with disabilities.

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