OCEAN CITY, Md. -- The rate taxis can charge per ride has remained flat since 2014. However, it looks like that will change following Monday night's city council meeting, where town leaders approved a fare increase.
Taxi companies can now raise initial fares, price-per-mile, wait time and additional passenger fees by 30%.
"We hadn't authorized a rate increase in 10 years, and obviously, they were struggling a little bit," said City Manager Terry McGean.
Fare Breakdown:
Prior Rates:
- Maximum initial fare: $3.20
- Maximum mileage charge: $2.20 per mile
- Maximum wait time charge: $0.33 per minute
New Rates:
- Maximum initial fare: $4.16
- Maximum mileage charge: $2.86 per mile
- Maximum wait time charge: $0.43 per minute
- Additional fee for more than two passengers: $1.30
In 2010, McGean said town officials noticed several issues with taxi services.
"We had cab companies that might pick somebody up who had too much to drink, and next thing you know, they're charging them a huge amount for the taxi ride," said McGean. "[There were] unpublished rates, we had vehicles that were clearly unsafe."
So, starting around 2010, the town cracked down. That oversight, however, never came with a fare increase.
In the decade-plus since, companies like Uber and Lyft have entered the scene, forcing taxis to take a backseat.
David Ferraro, the General Manager of Taxi Taxi, said when those rideshare apps first became available, Taxi Taxi's business dropped roughly 75%.
In the years since it has evened out a bit, but Ferraro said the company has still been dealing with rising costs for gas, insurance, vehicle maintenance and town-required inspections.
All the while, the fares taxis were able to charge never budged. It's why Ferraro believes the price hike is warranted. However, he acknowledged the impact it could have on customers, especially those who use cabs at a higher rate.
"Eventually, everybody will get used to it, and it'll be fine, but I think initially it could hurt our business a little bit," said Ferraro. "I think people may look for other ways to get around, they might not be able to afford a ride."
Ferraro expects Taxi Taxi's fares to increase by 30% all at once. He said it would be too expensive and difficult to change out cab meters multiple times.