Taxi fares: how calculated?

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Taxi fares can be fixed or calculated based on usage, time, and mileage. Usage fees are charged immediately, and time and mileage charges are added later. Tipping is expected and ranges from 10-20% of the fare. Heavy traffic can increase costs, and walking or taking a bus may be cheaper in some cases.

Taxi fares are calculated in several ways. In the simplest of circumstances, a taxi may simply agree on a fixed price to travel from one destination to another. For example, a taxi at the Orange County, California airport might charge a flat rate for a trip to a nearby hotel or Disneyland. These taxi fares could range from 20-30 US dollars (USD), or higher on public holidays or during peak seasons. Sometimes a taxi driver may be willing to negotiate a fixed price with a potential passenger.

More frequently, taxi fares have a rather complex calculation formula. Taxi fares are charged based on usage, time and mileage. Immediately after getting into a taxi, the passenger is charged a usage fee. This dollar amount varies; sometimes it’s only a couple of dollars, sometimes much more in congested areas.

The usage fee does not take distance into account. The fare is fixed, and when a taxi driver turns on the meter, the meter often shows the starting point at the usual fare. In general, the next stage in calculating taxi fares is charging based on time and mileage.

The reason the time is calculated is because not all taxis will take the same amount of time to reach a destination. Heavy traffic can be a factor. Therefore there may be a charge for a certain number of minutes or even a charge per minute.

Usually, taxi fares charge both for the minutes the taxi is used and for the distance travelled. The meter usually charges a quarter or so per tenth of a mile (km). However, if the ride takes longer than expected, charges per number of minutes may also apply. If your ride is relatively short, you may expect to pay both the usage charge and the mileage fee, but you may not be charged for time. If the ride is long due to traffic, costs may also apply.

In heavy traffic, if you only walk a few blocks, it could be much cheaper to take a bus or walk. However, paying taxi fares is definitely a viable option if you want to. Just expect to pay more for a ride that takes longer to complete.

Additionally, most taxi drivers also expect tips beyond the stated fares. Generally tipping ranges from 10 to 20% of the fare, depending on how the service was provided. A good conversation with a taxi driver deserves a better tip. A taxi driver who, on the other hand, takes years off his life with his expedient driving may deserve a smaller amount. Tipping, unlike the taxi fare, is at the cyclist’s discretion.




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