Cabs Overcharged New Yorker’s $8.3 Million

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NYC Taxi

Next time you get in a yellow cab, make sure that you check the rate the cab driver enters into the magical little machine in the front. It seems that over the last few years cab drivers have been making a few extra bucks, and by a few I mean over 8 million dollars, by charging riders rates reserved for trips outside city limits.

On average, customers that were scammed, overpaid by $4.45 per trip. That’s a venti latte at Starbucks!

According to the Taxi and Limousine Commission, the rates you should pay are:

Standard City Rate (Rate Code 1)
$2.50 upon entry
$0.40 for each additional unit

The unit fare is:
-One-fifth of a mile, when the taxicab is traveling at 6 miles an hour or more; or
-60 seconds when not in motion or traveling at less than 12 miles per hour.
-The taximeter shall combine fractional measures of distance and time in accruing a unit of fare. Any combination of distance or time shall be computed by the taximeter in accordance with the National Bureau of Standards.

-The fare shall include pre-assessment of the unit currently being accrued; the amount due may therefore include a full unit charge for a final, fractional unit.
-Night surcharge of $.50 after 8:00 PM & before 6:00 AM
-Peak hour Weekday Surcharge of $1.00 Monday – Friday after 4:00 PM & before 8:00PM
-New York State Tax Surcharge of $.50 per ride.

While $8 million is a lot of money, it’s actually a very small percentage of cab rides. It turns out that most cab drivers are honest folk, less than half of one percent of cab rides in the last 26 months have been intentionally overcharged.

Dr. Evil

So, don’t distrust all cab drivers just make sure you know exactly what you’re being charged.

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