By the end of this year, the cost of an average NYC taxi ride will increase by 23% according to a unanimous vote held last Tuesday, November 15, by the NYC Taxi and Limousine Commission. This marks the first increase in roughly a decade.
The average metered fare will increase to $19.62 per ride, $3.65 more than the original $15.97 fare. Additionally, the base rate for metered rides will rise from $2.50 to $3. Surcharges will increase from $1 to $2.50 for rush hour trip and $0.50 to $1 for overnight trips.
Cab fares to and from airports will also be affected. Rides to and from JFK Airport will jump from $52 to $70 and a $5 surcharge will be added to all trips to and from LaGuardia Airport.
Commission members said the fare increase is part of an effort to “put more money in the pockets of [taxi] drivers” since the yellow taxi and street hail livery (“SHL”) industry in New York City has gone through changes, most notably due to the increase of ForHire Vehicles on the road such as Uber and Lyft. Driver revenue is expected to increase by 33.3%.
Uber and Lyft will also see an increase in rates by over 7% per minute and 23.93% per mile, further supporting the study conducted back in July of this year that showed NYC has the most expensive Ubers out of any U.S. city.
The decision to increase fares also was dependent on booming gas prices, inflation, and increased driver expenses such as the cost of buying a new vehicle.
The fare increases will go into effect before the end of the year.