NYC Taxi Service Over Charging Passengers In $8.3-Million Scam


A passenger contacted 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 cabs since 2007. The records were examined and upon further review of records, it has been determined that passengers were probably overcharged. They calculate this to be approximately $8.3 million in the last two years.

There are 48,300 taxi drivers having licenses in New York City. The reports show that 35,558 have overcharged a passenger more than the once. It was also determined that 3,000 drivers have charged passengers a higher amount over 100 times.

There are two taxi fares used in the city. A lower rate (half the standard amount) is charged for rides in New York 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.

New YorK City Mayor, Michael Bloomberg, declared that this would stop immediately. The New York Taxi Workers Alliance said that it could be a problem with the meters and not all drivers.

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