How Much Do Taxis Charge Per Mile
So, how much do taxis charge per mile, and what are the various factors involved in pricing? please read on and see what’s involved.
The taxi and PHV markets are expanding and evolving. Significantly, they are at the forefront of transformative social and technological change, as well as the introduction of new business models driven by a new breed of Transportation Network Companies.
Taxi culture is changing in every major city across the world. Indeed, in the future, these markets may be among the first to be automated, as well as play a key role in the transition to ‘Mobility as a Service,’ in which transportation becomes shared and on-demand. Despite this, taxi and private hire services are frequently overlooked (both nationally and locally) in larger strategic transportation planning. At the same time, the sector is subject to a complex, hotly disputed regulatory framework that struggles to keep up with a rapidly changing world.
Taxi fares are determined by the time of day, distance travelled, and time is taken. Tariffs determine how much passengers pay to travel a certain distance or for a certain amount of time. A taximeter is used to calculate fares, and the meter displays the maximum fare that can be charged at the end of a journey. A different tariff rate applies once a journey reaches six miles.
The following are the times when the various tariff rates apply:
- Tariff 1: Monday through Friday, 05:00 to 20:00
- Tariff 2: Monday through Friday from 20:00 to 22:00, Saturday and Sunday from 05:00 to 22:00
- Tariff 3: Every night from 22:00 to 05:00 a.m., excluding public holidays.
The tariff rate for journeys of more than six miles, also known as Tariff 4, applies to all journeys of more than six miles at all times. The current tariff rates are:
- Tariff 1 – £2.74 per mile for journeys up to six miles
- Tariff 2 – £3.37 per mile for journeys up to six miles
- Tariff 3 – £3.96 per mile for journeys up to six miles
- Tariff rate for journeys over six miles – £3.70 per mile
At all times, the minimum fare is £2.60.
There may be extra charges if:
- your taxi journey includes some waiting time or is held up by traffic
- you have more than four passengers in the taxi – £1.00 for each additional passenger
- your taxi journey is to an airport, and the taxi must pay for airport entry
- you soil the taxi and the driver has to stop working to get the vehicle cleaned (this charge is up to a maximum of £75.00)
Other permitted charges are:
- Up to £2.00 for phone or online bookings
- £2.80 for journeys beginning at one of Heathrow Airport’s taxi ranks
- £4.00 for trips taken between 20:00 on December 24 and 06:00 on December 27.
Between 20:00 on December 31st and 06:00 on January 2nd.
- A soiling charge of up to £40.00
Because Uber drivers operate under a private hire license, the hackney carriage fares do not apply to them. When users book an Uber ride through the app, they are given an estimated price for their journey on the screen. This price is determined by traffic and the time of day the journey is attempted, so it is subject to change based on driver availability.
‘Dead Miles’ exemption
Any Class A and B taxi drivers are forced to ride a long way in an empty taxi in order to pick up a passenger, with no payout. The mileage driven by a taxi driver to get to a booking without any passengers in the taxi is referred to as “dead miles.” For instance, if a driver drives from Antrim town to Randallstown (about six miles) to pick up a passenger who wishes to ride two miles, the driver travels eight miles overall but can only bill for two since the taximeter cannot be started before the journey begins since the rules prohibit the taximeter from being started before the journey starts.
For a ‘dead miles’ taxi journey:
- The taxi driver must warn the rider that the taxi’s distance travelled to pick up the passenger is greater than the passenger’s real distance travelled in the taxi.
- The rider and the taxi driver must conclude that the fare will not be determined by the taximeter.
- The journey fare must be settled upon at the time of booking, and it cannot be raised until the taxi has been booked.
If a taxi driver or operator drives for “dead miles” without taking the measures mentioned above, they can be fined for one or more of the following offences:
- fail to use the taximeter – £30.00
- Failure to provide a taximeter printer receipt – £30
- requesting a fare higher than the maximum – £120.00
A Class C taxi, which includes cars used for chauffeur services, weddings, funerals, and courtesy transportation, is exempt from the overall fare system. As a result, before travelling, you must settle on a rate, and you cannot be paid higher than that fare.
Taxis classified as Class D are exempt from the full fare structure. The taxi operator sets its own rates on these taxis.
Passengers’ views on taxi fares
Taxi and minicab users were polled on their thoughts on taxi fares as part of the 2016/17 Black Cab and Minicab Passenger CSS. These are shown below, along with the previous year’s results. In 2016/17, the majority of taxi users (56%) thought taxi fares were too costly, while 81% of minicab users thought taxi fares were too expensive.
Taxi and minicab users were surveyed on their thoughts on minicab fares. Just under two-thirds (63%) of taxi users thought minicab fares were reasonable.
The Cost Index has been in use for several years and is a useful mechanism for tracking changes in the costs of being a taxi driver in London. The Cost Index only tracks changes in these elements; it does not consider driver or public opinion, and it does not necessarily reflect the general economic or social state at the time.
Tariff rate for longer journeys
The impact of any changes to the tariff rate for longer journeys would be determined by the nature of the changes. Passengers would benefit from any changes that resulted in lower taxi fares for longer journeys. Drivers may suffer if the fares for these trips are reduced; however, if this leads to an increase in demand, the overall impact on them may be positive.
For longer journeys (also known as Tariff 4) the tariff rate is higher than Tariffs 1 and 2, but lower than Tariff 3. The reason for there being a different tariff rate for longer journeys is because drivers completing these journeys may be less likely to be hailed on the return journey to the area where they normally work. That might be less of an issue now that some drivers will be offered taxi fares on their return journey.
Diesel prices can fluctuate quickly and unpredictably, and a significant increase during the year would result in additional costs for drivers that they would be unable to recover from passengers. Special provisions have been in place since July 2008, allowing an additional charge of 40 pence to be added to each taxi fare if the cost of diesel rises significantly.
The extra charge would be authorized if diesel prices reach a threshold level. The threshold is the price at which the overall increase in taxi costs would be proportional to the increase in average fare, as represented by the diesel charge.
As modern transportation systems become more complex, there is a greater need for mobile applications that help travelers navigate cities efficiently. In taxi transportation, new standards must be implemented, including a flexible pricing scheme in which trip costs can fluctuate rapidly depending on passenger demand and driver supply. Travelers must have real-time access to provider pricing in order to make informed decisions about the best provider for their journeys.
Taxi fares can occasionally be a source of contention between a taxi driver and a passenger, with the latter frequently not understanding how the tariff rates work. The best way to resolve a fare dispute is to explain to the puzzled passenger how their fare was calculated.
To be able to do so, you must understand how fares are calculated. When your taxi meter does all of the work for you, you don’t need to understand how fares are calculated. However, if you want to reduce your chances of becoming embroiled in an avoidable fare dispute, you should make it your business to find out. Please read our other blogs, and discover everything you need to know about the taxi industry, and also how much are taxi drivers paid.