Thursday, September 20, 2012

The World's Most Expensive Cabs?

This month new cab fares went into effect in New York. Fares will rise an estimated 17 percent under a new cost structure approved by the Taxi and Limousine Commission this summer.

For each fifth of a mile, or each minute in traffic, the fare goes up 50 cents, instead of 40, in the new system. It's the first across-the-board increase in about eight years, and cabbies say it's essential to keep up with rising fuel costs, but New Yorkers still aren't happy. One Christopher Keating, 42, told Reuters:

"A 17 percent hike all at once is a little hard to swallow," Keating said. "They may deserve a raise, but it seems like it would make more sense in smaller increments, year to year."

C. Keating might check out a new report from the Swiss bank UBS for some global perspective. On a list of cab fares in 72 cities around the world, New York fares are in the middle of the pack. UBS calculates the price of a typical 3-mile cab ride in the city at $8.50.
That's just above Dubai ($8.17) and just below Istanbul ($8.94). It's also considerably less than the other three American cities on the list:
Chicago ($12.50)
Miami ($15.32)
Los Angeles ($25.06).
It's even less than the global average, which UBS puts at roughly $10.

Angelinos have a lot more reason to be sore. Their fare ranks third overall — losing out only to the Swiss cities at the top of the list:
Zurich ($28.93)
Geneva ($27.78)
Stockholm ($24.64)
Oslo ($23.22).
London ($23.03)
Tokyo ($21.42)
These are all places that top the twenty-dollar mark.

A few others come pretty close:
Luxembourg ($19.43)
Munich ($18.04)
Copenhagen ($17.33)
Vienna ($17.27).

As a general rule, if you're in Europe, you're paying a lot for taxis.

At the other end of the spectrum is Cairo, where 3 miles in a cab costs you $1.49.
Mumbai ($1.76)
Delhi ($1.95)
Sofia ($2.00)
Kuala Lumpur ($2.44)
These cities round out the bottom five.
Bangkok ($2.47)
Bogota ($2.81)
Manila ($2.88)
Jakarta ($2.93) are the others below three bucks.

New Yorkers like can at least rest assured that the recent fare hike will go to struggling cab drivers and not fleet owners.

While the fare increased 17 percent, the rate of leasing cabs from medallion owners seems to have stayed about the same, (but may go up slightly soon).

As taxi expert Bruce Schaller pointed out many years back, fare increases do raise industry revenue, but not quite as much as the percentage fare increase itself. That means if cities raise lease rates as much as fares — well, they may be asking for another fare-hike debate sooner than their residents would like.

Different cities, but same problems.


Vaclav Halday said...

Looks like the Swiss know what they are doing, the right rate for the job.

TfL want us on a buck an hour carrying Boris's 'Master of the Universe' around.

Balancing Costs of Fare against Cost of Living
Munich is Die WeltMeister.

They get 0% Cab loans from the council and claim back fuel duty and use Merc Saloons.

Therefore we are probably out of the top 20 by some way.


Anonymous said...

Life is cheap in some countries.

But the fact it is still cheaper for five people from Piccadilly to selfridges than traveling on a bus or tube, makes us reasonably priced.

Anonymous said...

Quite weird how tfl has managed to issue a new ph operator a license until 2017 and new venues on its license although the company has only been formed for 2 months! Are they not supposed to be trading a year? -

Vaclav Haldady said...

It aint the price we charge that counts, its the running costa and margin.

We get NO concessions and are ,either a 'valued link in Public Transport' or as the Olympics proved to be ignored.

Who now remembers Hackney Carraige Road Tax?

Still as my old mum says:

'If you dont squeak, no one is going to oil you'.

Most of the Cab Trade see no further than the next job and trot out the old 'well, what can you do'

Dont keep taking the shit I say!