New York taxi cab fares are set to spike by nearly 23 percent by the end of the year, making it the first cab fare increase in New York City in nearly a decade.
The NYC Taxi and Limousine Commission held a vote approving the fare increase unanimously on Tuesday, CNN reported.
Base fares for city cabs are expect to rise by about 50 cents from $2.50 to $3.00 and surcharges for rides during certain times of day like rush hour will increase from $1.00 to $2.50.
Taxi fares to John F. Kennedy International Airport will jump from $52 to $70, and trips from the city to LaGuardia Airport will have a $5 charge added to the final fare, CNN reported citing the Taxi Commission known as TLC.
The commission says drivers' gross income will increase by 33 percent covered by the fare increases which will also go into effect by the end of 2022, according to TLC.
TLC Commissioner David Do, said, “Raising taxi fare rates and minimum pay for high-volume drivers is the right thing to do for our city. This is the first taxi fare increase in ten years, and these raises will help offset increased operating expenses and the cost of living for TLC-licensed drivers."
A list of factors is being blamed on the fare increases including the rising cost of automobiles and repairs along with high gas prices, inflation and cost of living increases in New York.
“I think part of it and part of our idea with increasing the taxi fare is that the financial compensation just isn’t there. So, if drivers were paid more, then there would be more of a financial incentive for drivers to get back on the road for medallion orders, to put their vehicles on the road, and for garages to vehicles back on the road,” said TLC Policy Assistant Commissioner James DiGiovanni.