GTA Cabs Blogs

How the Meter Works

Studies show consumers are often unaware of how a taxi meter works. Consumers often hailing cabs in urban areas are inside the Taxi for not more than a few minutes and are mindless to how cost is calculated during the ride. Consumers traveling to the ‘Airport’ or ‘Out of Town’ are more commonly aware of flat rates that can help reduce cost for high priced taxi fares.

The meter is commonly calculated by the ‘drop rate’, distance traveled, waiting times, and number of passengers. The ‘drop rate’ is referred to as the initial surcharge/cost incurred by the customer upon entering the vehicle when the meter is activated. Distance traveled is crucial to calculating the cost of the taxicab ride. Municipalities set and regulate the dollar amount calculated commonly per kilometer. Waiting times are also set and regulated by the town/municipality calculated into the cost of the meter. Towns and municipalities can often charge for additional passengers entering the vehicle as well. Rates are decided through council with feedback from the Industry, studies, and reports. The Meter is commonly tested and sealed upon routine inspection to ensure they are not tampered with and operating correctly.

Commonly By-laws prohibit Drivers, and companies to charge less than the meter rate for trips within the City. Flat rates set by companies to the Airport or Out of Town are always advised for consumers to take advantage of. Consumers can calculate discounts received by understand the municipalities drop rate, rate per km, and charges for wait times.