Ever felt that a Cabbie was taking you on a deliberately long route to make you pay more for the ride? Not in New York they didn’t. As it turns out the Taxi business there is one that relies on volume not distance. You can read the story over here; some of the more interesting points include:

  • The average tip is 18%-19%
  • Cab Drivers sometimes encourage people to take mass transit
  • The number of fares needed to turn a profit on average is 20-30
  • Overall fares haven’t increased since 2004

Via: Freakonomics Blog

Source: WNYC News

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