Minneapolis adjusts rate to allow for increased taxi rates

The city of Minneapolis raised the maximum on taxicab rates to allow cabs to charge customers $2.50 per mile, an increase of 15 cents per mile.

To put that in perspective, a five-mile cab ride in 2010 would have cost, at most, $13.78. Now a taxi can charge up to $15 for the same 5-mile ride.

The rate adjustment does not need City Council approval and cabs can begin raising rates immediately. The city in May 2009 approved an ordinance that allows city staff to raise or lower the rates each year based on an approved taxi cost index.

Taxis do not have to raise rates.

According to a city staff report, the cost to operate a taxi increased by 7 percent from July 2009 to June 2010. The city’s index factors in fuel costs, repair costs, insurance prices, parts and equipment and the general Consumer Price Index.

City staff analyzed 20 other cities in order to compare Minneapolis taxicab rates to rates elsewhere.

With the new rates, Minneapolis ranks seventh out of the 20 cities. It’s 2010 rate would have ranked ninth.

Based on a five-mile cab ride in 2010, Honolulu, Boston, Los Angeles, Las Vegas, Milwaukee and Seattle rank more expensive that Minneapolis.

Miami, San Francisco, Denver, St. Paul, Atlanta, New York, Cleveland, St. Louis, Tulsa, Houston, Dallas, Washington, D.C., Chicago and New Orleans rank cheaper than Minneapolis.

A five-mile cab ride in New Orleans costs $7.30. In Honolulu is costs $18.70. In St. Paul it costs $13.06.