Monday, October 27, 2014

Report: Taxi rates in Detroit could increase

Posted By on Mon, Oct 27, 2014 at 12:16 PM

The Detroit Free Press today dove into the world of Detroit cab options, focusing on the different regulations guiding cab services and new smartphone-driven options like Uber and Lyft. The effort stems from a decision to prevent Uber and Lyft from charging higher rates, reports the Freep's JC Reindl

The result could be pricier meter rates, but it would also provide an incentive for cab drivers to follow the rules and not charge exorbitant flat rates for short rides, an illegal practice and common complaint among Detroit cab passengers. Drivers face a misdemeanor ticket if caught charging over the city's official rate of $1.60 per mile with a $2.50 base fare.

Some of the problems? Reindl writes that: cab drivers complain current fare rates "are too low to make a decent living without charging illegal, off-the-meter flat rates;" Uber and Lyft drivers don't have to pay registration fees or purchase similar insurance; and the smartphone services allow rates to be set through a different pricing mechanism.

The story focuses on the backstory of Detroit's cab services, including a brief mention of consumer advocate Ralph Nader. Check out the entire thing here

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