It’s Last Call – Taxi Costs Versus Limo Rental Rates

You're not alone if you've ever wondered how taxi costs compare with limo rental rates. It's one of the most common questions people ask when looking to hire a cab. But there are also many advantages to using a limo. Here's a look at some of them.

Taxi fares are set by regulation.

Various bodies in cities regulate taxi fares. These rules cover multiple topics, including geographic coverage, safety, and price setting. The regulatory structure can vary considerably across jurisdictions.

Almost all metropolitan areas have several taxi-regulating bodies. Several states have state-level regulations, while others regulate cabs at the county or city level.

For example, in Los Angeles, the regulation requires that a cab provide a certain number of trips within a given zone. The rules also require a response time standard.

A city's taxi regulations are often based on local experience and economic theory. The principle of fares is designed to protect drivers from overcharging and ensure that drivers receive a reasonable return.

In some cities, new companies can apply for certificates, which allow them to operate a specified number of cabs. Other fleet-oriented systems, such as medallion systems, require a certain amount of cabs used by a specific company. The entry of new companies is a vexing regulatory issue.

Limousines convey a certain level of prestige.

Limousines have become a rage with tourists and locals alike, especially in cities with many hotels and restaurants. These vehicles can accommodate up to eight passengers and have a large compartment for luggage. However, many regular taxi fleets still comprise the old sedans and minivans that have been a rule of thumb since immemorial. In short, limos are fun to ride in and can also be a very safe bet.

The cheapest limousines can run into thousands of dollars. While the price of a limo ride may be prohibitive for some, a quality limo will be the only sane way to get to the airport on time. A limo service also comes in handy for family vacations and kid-friendly excursions.

One limo company, in particular, makes its wares available to visitors from all over the world. Some limo services exist in less developed locales, such as Cairo, Egypt. It's a good idea to check out a limo service near you before you go all out and splurge on an expensive limo trip to another country.

Uber, Lyft, and Grab aren't always 100% reliable.

It's easy to laud ridesharing services such as Uber and Lyft for their ubiquity, but these transportation aficionados are not all obedient unicorns. Indeed, some of the more established competitors have had their fair share of bumps, bruises, and snafus, and you'll find that the best of them is sometimes the worst of the rest.

One thing you won't get from an app is a full-service, chauffeured private car service. The good news is that these ridesharing services are slowly making their way to the suburbs and rural idylls of America. That is if you have the means and a bit of chutzpah. That notwithstanding, the perks of the proverbial taxi are hard to come by these days. Is it time for the cab driver to pick up the phone and call you? This is, of course, if you remember to call in the first place. To be safe, you'll want a well-planned emergency plan, including contact information for your chauffeur and the local PD, if you aren't already.

Taxi fares are more expensive than limos.

The Taxi & Limousine Commission of New York (TLC) has unanimously approved a 23 percent increase in cab fares. According to the Commission, this is the first fare increase in 10 years.

Taxi fares are computed using several factors, including the distance and time needed to reach the destination. The higher the rate, the more money the driver will make. The Commission says this will provide a 33 percent boost in the driver's pay.

The increase will be reflected in the base pay of all drivers. Uber and Lyft will also see a 7% increase in rates.

The TLC hopes the increase will reduce the number of rides drivers must take and make finding a cab easier. However, the increased prices will likely lead some drivers to look for work elsewhere.

There are a few things that travelers can do to keep their costs down. For example, if you are in town on a Friday or a Thursday, you can rent a limo for a cheaper rate.