This sounds like quite the opposite of the future I (optimistically) think we're moving towards: reclaiming our streets for pedestrians and cyclists.
This happens in Hong Kong already, where renting a parking spot is more expensive than hiring a part-time driver.
All this innovation and we have come to the point where cars cruising waiting for summons is a better solution than just parking.
So tax unoccupied driving.
How do you do this without uncomfortable levels of government surveillance?
The car could have a "unoccupied miles driven counter" that you reported manually or automatically once in a while. Much like how you report your electricity usage to the power company.
In 2045: “What do you mean you are going to DMV? You work there? WAIT. Are you still hand-steering that 2025 Prius!? And you still haven’t fixed that yanked off telematics!?”