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Fare-Gouging Taxi Tip Default Settings Die This Week!

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Oh, Taxi TV. (zugaldia's flickr).

Good news for drunk taxi passengers (or just riders with bad math skills) is less good for taxi drivers. After this week the auto-suggested tips for rides under $15 in taxi cabs with VeriFone Taxi TVs will stop being $2, $3 and $4 options and instead resort to the standard 20, 25 and 30 percent defaults already available in the Creative Mobile Technologies Taxi TVs. Hurrah!

The change, which kicks in after this week, comes after a number of customers reportedly complained to the TLC that some riders were being offered default tips that can be half of the cost of a short trip. "Our job is to look out for the customer," TLC chair David Yassky said. "A default tip setting that can be 50 percent of the fare is just a little too high."

According to the city the average tip in taxi cabs is 18 percent but the majority of taxi riders who use credit cards prefer to use the preset tips rather than enter a number themselves and can get screwed for it—which is why the presets in VeriFone cabs are now being changed. Of course, not everyone is going to love the new presets, especially hacks. Drivers, who are already losing five percent of total fares to credit card fees, are now likely to make less on tips from lazy riders under the new system.

Meanwhile, in other taxi news, a preliminary plan for how the much-heralded new livery cab street hail system will go says that the new livery cabs—which will likely have fare rates matching existing yellow cabs—will not be required to have Taxi TVs in them (though they will have to take credit cards). Score one for those who hate noise pollution while trying to get places!

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

Comments [rss]

  • kevd

    people need to be better at really simple math.
    figuring out 20% of anything should take about 3 seconds.

    also, 5% is too damn high for a credit card fee, right?

  • ToastNYC

    When I am getting out of a taxi, the last thing i want to do is math of any kind, i just want out.

  • Emmily_Litella

    Life sucks doesnt it?  After all the cow milkin’, butter churnin’ and field tillin’ who wants to think!

  • ToastNYC

    I don't follow.  Why am I on a farm?

  • Detex

    I don't know but this comment thread just made me spit a little coffee! Awesome!

  • AuntySemantic

    Question:  When you hit one of the default tip buttons are you being charged 20, 25, 30% of just the fare or the fare combined with whatever surcharge is in effect?

  • Detex

    Since when is "20, 25 and 30" percent a "normal" taxi tip anyway? Not to sound like cheap but why should you tip more for a cab than most do in a restaurant? I am all for 20%+ in a restaurant if the service is good. When was the last time you were in a cab and it did not smell or the driver was not on the phone?

  • diablofreak

    pay cash. round them up to the next dollar or if they didnt make you puke, round it up to the next 5 dollars. that's how i do it. screw anyone trying to tell me how much to tip a taxi driver who almost ran over 50 people trying to get another fare pickup into his day.

  • ToastNYC

    Does anyone else remember those awful "celebrity" audio messages that played in cabs for a while?
    "This is Ertha Kitt.  Meow.   Don't forget you receipt! Have a PUUUURRRRRRRRRfect day."

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