NYC Approves Fare Hike for Yellow Taxi and App-Based Cabs

By Matis Glenn

The Taxi and Limousine Comission of New York City voted unanimously on Tuesday to increase fare rates for yellow Taxi cabs and app-based services, AM New York reported.

For yellow cab drivers, who have been protesting over low income and steep medallion debt, the fare hike is a welcomed boost – the first of its kind in 10 years.  Base fares for yellow cabs will increase from $2.50 to $3.00, and every meter unit – 1/5 of a mile – will go from $.50 to $.70.

ABC News estimates that an average trip will cost 23 percent more than current costs, and that overall, taxi drivers will see a 33 percent increase in pay. Some trips will have a flat increase, including Kennedy Airport, will cost $70, up from $52.

App-based services like Uber and Lyft, whose drivers lobbied together with yellow cab drivers, will raise fares by 7 percent per-minute, while per-mile fares will jump 24 percent.

“Raising taxi fare rates and minimum pay for high-volume drivers is the right thing to do for our city,” said TLC Commissioner David Do in a statement to AM New York. “This is the first taxi fare increase in ten years, and these raises will help offset increased operating expenses and the cost of living for TLC-licensed drivers. We are confident that today’s unanimous Commission vote will keep our taxi and FHV fleets sustainable and ready to serve New Yorkers.”

Though demand for rides is high, the TLC says that many cab drivers have stopped working, due to the high cost of gas and other expenses.

“The financial compensation just isn’t there,” TLC Policy Assistant Commissioner James DiGiovanni told ABC. “So if drivers were paid more, then there would be more financial incentive for drivers to get back on the road, for medallion owners to put their vehicles back on the road and for garages to get their vehicles back on the road.”

Some passengers aren’t as excited about the news.

“I have mixed feelings about it,” Yehudah G., a Midwood resident who at times relies on car services told Hamodia. “On the one hand, the drivers work hard and don’t make a lot of money, depending heavily on tips that they don’t always receive. On the other hand, it can be a hardship for people who are dependent on cabs, who are worried about public transportation due to the rise in crime… I think 24 percent is a bit much, because it far exceeds inflation…between 10 and 15 percent would be a good balance.”

The fare increases are expected to go into effect before the end of the year.