The city’s regulatory commission for taxis and app-based drivers voted unanimously to raise the costs of rides Tuesday, marking the first time in 10 years it increased rates for yellow cabs. 

The starting cost of a yellow cab ride will rise 50 cents, from $2.50 to $3, and the meter unit will increase from 50 cents to 70 cents, the Taxi and Limousine Commission said in a presentation on the rate changes Tuesday. Trips from Manhattan to JFK Airport will now cost $70, up from $52, and rush hour surcharges are $2.50, compared with $1 previously. 

New increases to the minimum payment levels for app-based drivers, such as Uber and Lyft, will increase by about $2.50 for a 7.50-mile trip, according to the New York Taxi Workers Alliance. 


What You Need To Know

  • The city’s regulatory commission for taxis and app-based drivers voted unanimously to raise the costs of rides Tuesday, marking the first time in 10 years it increased rates for yellow cabs

  • The starting cost of a yellow cab ride will rise 50 cents, from $2.50 to $3, and the meter unit will increase from 50 cents to 70 cents, the commission said

  • New increases to the minimum payment levels for app-based drivers, such as Uber and Lyft, will increase by about $2.50 for a 7.50-mile trip, according to the New York Taxi Workers Alliance

Costs to riders will increase by about 23%, in line with the changing cost of rail and bus commuting over the past decade, according to the TLC’s presentation. 

The rate increases bring take-home pay after expenses to about $22 for app-based drivers and about $19 for yellow and green taxi drivers, said Bhairavi Desai, the alliance’s director. 

“It’s a new beginning for thousands of drivers who've all been struggling due to inflation,” Desai said in an interview. “It’s a good step forward. But, much more work to be done.”

In a statement, David Do, the TLC’s commissioner, said the rate increases would help drivers handle rising operation and cost of living expenses. The average price of gasoline is up about 10 percent over this time last year, according to state statistics

“Raising taxi fare rates and minimum pay for high-volume drivers is the right thing to do for our city,” Do said. 

While city rules require the TLC to raise minimum payment levels for Uber and Lyft drivers regularly, no such requirement exists for yellow and green taxi drivers. This is the second raise in take-home pay for taxi drivers since 2004.

Desai said that she plans to ask the City Council to pass a law that would require regular rate increases, part of the alliance’s goal to bring take-home pay up to $25 for all drivers. 

“There are policies on the yellow cab side that we still need to catch up to the app driver side,” she said. 

Representatives for Lyft and Uber did not immediately respond to a request for comment. 

The TLC said it expects the higher rates to take effect before the end of the year. According to the TLC’s presentation, previous rate raises have seen brief drops in ridership, followed by “a quick recovery.”

Total taxi rides in the city dropped steadily between 2012 and the onset of the pandemic, and have seen a slow recovery since the 2020 lockdown.