The Big Apple is taking a big bite when it comes to the parking fines UPS and its chief competitor, FedEx, pay out each year.
A spokesman for Sandy Springs-based UPS told Crain’s New York Business the company pays New York City more than $1 million per quarter to cover parking violations. Memphis-based FedEx paid out $1.8 million in the first quarter, according to Crain’s report on the millions commercial businesses are fined annually in the city.
By comparison, a spokeswoman for the Atlanta Police Department said the package delivery companies normally do not face parking fines in the city, which designates spaces for such vehicles.
Crain’s said 20 to 30 percent of the $550 million New York expects to collect this year in parking violations will come from commercial delivery companies, including the U.S. Postal Service. That compares with about $197 million from parking meters.
Critics in New York say the delivery companies get discounts on their fines if they are enrolled in a program that expedites their payments. The program also allows them to double-park in some areas. The New York Trucking & Delivery Association has sued the city, claiming it is trying to make up for lost revenue.
Crain’s report says both UPS and FedEx are trying to come up ways to cut down on violations, including renting spaces in private lots as staging areas and providing more training on how to avoid violations. The city has also encouraged companies to make deliveries during non-peak hours.
As for the steep fines, one UPS spokesman said it’s just part of the cost of doing business.
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