Rideshare customers in the city will be required to pay a $2 surcharge on every ride.

Rideshare customers in the city will be required to pay a $2 surcharge on every ride.

Customers of rideshare services in Portland, Oregon, will see a sharp increase in fees starting July 1, as the city implements a new $2 surcharge on every ride.

The new fee, which applies to all Uber and Lyft rides within Portland, marks a significant jump from the previous charge of 65 cents. The Portland City Council approved the increase last month, and the surcharge is expected to generate about $10 million annually for the Portland Bureau of Transportation.

City officials say the revenue is needed to support the underfunded transportation bureau.

"We know that the transportation bureau is starved for money," said City Commissioner Steve Novick during a meeting last month.

Portland’s surcharge far exceeds similar fees in other cities and is currently the highest of any city in the country. Denver charges 34 cents per ride, New Orleans charges 50 cents, and Seattle charges 85 cents. Many other cities have no rider surcharge at all.

According to KGW8, Uber criticized the move in a statement, with a company spokesperson saying, “Applying such an expensive fee city-wide, for everyday trips, without any clear justification, is not something we see in other markets.”

Cities have increasingly turned to rideshare fees as a revenue source during budget shortfalls. Sergio Avedian, a senior contributor to the website The Rideshare Guy, said the fees are an easy way for cities to raise money.

"They're cash strapped," Avedian explained, per KGW8. "It's easy and who doesn't use ride-share services these days? Each trip, in Portland's case, if it's going to be $2, it amounts to massive amounts of revenue for the city."