In May, the New York City Taxi & Limousine Commission (TLC) held a public hearing to present a proposed rule to make the Flex Fare Pilot Program permanent, offering yellow taxicab passengers the same price certainty as For-Hire Vehicle (FHV) passengers. Flex Fare, introduced as part of a pilot program in 2018, represents a departure from traditional metered fares, allowing ride-hailing apps like Curb, Arro, Myle, and Waave to offer upfront fares to taxi passengers.
As the TLC evaluated the pilot program, insights provided a nuanced understanding of its effects on both drivers and passengers. The rationale behind this shift was clear: passengers sought transparency and the ability to compare prices before committing to a ride, while the taxi industry aimed to adopt pricing structures akin to those in the FHV sector, thereby attracting a broader clientele.
Not surprisingly, drivers at the TLC’s May public hearing expressed serious concerns. Many feared the upfront fares could negatively impact driver pay through e-hail apps. They also called for more safeguards in the rules and shared concerns about trip cancellations and destination changes mid-trip.
According to findings gleaned from the pilot, the TLC says Flex Fare trips were actually more profitable for taxi drivers than average street hail trips, both on a per-mile and total basis. Additionally, these trips were deemed “fairly priced,” with no adverse effects on driver earnings. The program also saw an uptick in popularity, with flex fares constituting a growing percentage of taxi trips (albeit still below 5% of the total). Notably, Access-A-Ride participation played a pivotal role in diversifying trip types and origination points, contributing to increased trips and driver income.
Geographically, the distribution of Flex Fare trips mirrored traditional metered trips, with concentrations around Manhattan’s core. However, notable exceptions were observed at airports, where e-hail services are unavailable. Concentrating service in areas of high vehicle supply helped reduce passenger wait times and minimized deadhead time for drivers.
Source: Windels Marx
