Taxi fares may jump in Lynn

LYNN - Think the cost of taking a taxicab ride in Lynn is expensive enough?

Well, the cost may soon increase by 75 cents per ride to offset soaring gas prices and a weak economy if Tom's Taxi gets its way.

On Tuesday, the taxicab company requested a fuel surcharge of $1 per fare that would include an existing 25-cent surcharge to supplement rising costs for drivers who lease their vehicles.

Dale Latorella, owner of All City Taxi in Lynn, supported the proposed increase, but said it wouldn't directly benefit his business, but rather the drivers who are employed by it.

"The drivers aren't making nearly enough money to survive, and they're the ones that are paying for gas," he said. "The other taxi companies, Tom's and Garcia's, have a lease rate with their drivers and they pay for gas. I don't have a lease rate, so I do a 50/50 split and have the drivers pay for gas."

Currently, the starting meter rate for a taxi fare at All City Taxi is $3.75 per mile and increases 30 cents every 10th of a mile, according to an employee.

Latorella said the size of the surcharge request is because of the high cost of gas.

"It used to be that tips covered the cost of gas," he said. "But now, tips only account for about 10 percent of the gas costs. So, if a driver gets $20 in tips and spends $50 on gas, that's $30 out of his own pocket."

According to a city ordinance from 2000, a quarter-dollar increase was allowed on the fare for 14 consecutive days when gas prices reached $1.50 a gallon. Once the price of gas dipped below $1.50 a gallon, the increase would be void.

An increase has yet to be passed since.

"Gas prices are so high now that if my driver's aren't making money they won't be working, and then I'll be out of business," he said. "So the increase would really help the drivers to get by."

In 2005, taxicab fares in Boston rose 50 cents a ride, while taxicabs in Salem were recently halted by the Salem Police for raising fares by $1 per ride after several complaints were made.

Latorella said he was also forced to stop charging a higher rate by city officials.

City Council President Tim Phelan said he doesn't expect much opposition from the proposed increase and supported it.

"It's not unreasonable at all, and it just shows how the cost of gas is effecting every part of life," he said.

The issue will be further discussed in August.

July 2009

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