NYC taxi drivers rip off passengers by $8.3 million

A passenger filed a complaint with New York’s Taxi and Limousine Commission claiming that they had been overcharged for a recent taxi ride.
New York City yellow cabs have been required to have a GPS tracking device in their cars since 2007, so the commission was able to investigate the matter.

Having examined the records, the inquiry found that passengers were overcharged by the total amount of some $8.3 million during the last two years.

Approximately 48,300 taxi drivers have licenses in New York City. The report showed that 35,558 had overcharged a passenger more than the once. It also found that 3,000 drivers had charged passengers a higher amount over 100 times. Officials said during at least 1.8 million trips were passengers ripped off.

Officials say drivers overcharged by illegally setting their meters at a rate they are supposed to use for trips to the suburbs. A lower rate (half the standard amount) is charged for rides within the city and a higher rate is charged for trips outside the city. Drivers were using the higher rate for all, or a majority of the trips. The fares were all charged the same price.

The New York Taxi Workers Alliance said that there could be a problem with the meters and not all drivers.

In a few weeks, taxi riders will see an alert when the extra rate code has been activated.