More cities are seeing an increase in driving
As restaurants, businesses, and office spaces begin to operate at a greater capacity, many of the areas surrounding metro areas need more parking. Covid has changed the way people think about public transit and having contact with other people. Public transit ridership has dropped, and people are choosing to drive their cars to work.
Cities are seeing more traffic
Urban cities like Chicago and Boston have already experienced increases in car traffic, for example. Chicago’s Loop Alliance saw a 110 percent increase in digital parking in July alone. Boston is among some cities debating whether the transit fares need to be reduced to encourage more riders or if other incentives will draw people back to the commuter rails and other public transit.
Other cities predict that there will be more traffic congestion with tens of thousands more cars on the road post-pandemic and a need to park them.
10,000 spaces lost in NYC
New York City is one of those places where parking is limited. Subway ridership has dropped more than 50 percent from 2019. There’s also been a drop in rail commuting from the suburbs. Meanwhile, new vehicle registrations rose 27 percent in Manhattan in 2020. It is expected that Manhattan will register more new vehicles in 2021 than last year.
But more vehicles mean more parking. New York City has had at least 10,000 street spaces eliminated during the pandemic because restaurants were given outdoor dining space on sidewalks and bike lanes. The price for parking in garages is also increasing. Condo and co-op building spots also increased 51 percent on average in 2020.
Help employee drivers out
What’s going to happen when people start driving back to the office? That’s still the great unknown, especially with all that’s happening in the country with the pandemic. But one thing that can help commuters is commuter benefits.
Commuter benefits allows employees to save up to $270 tax-free every month for parking and other commuting costs like public transit or rideshares. Employers save too. An employer with 50 employees will save $24,000 in a year on the payroll tax if everyone participates.
And that’s not all. Edenred can also help companies find different ways for employees to commute, including micromobility like electric bikes and electric scooters.
For more information, schedule a meeting with us to see what we can do for you.