Executive Summary
The Chicago taxicab industry has not had a fare increase in several years. Nearly two-thirds of Chicago taxicabs aren’t currently operating. Among taxicabs that are operating, the average age of vehicles (according to model year) is more than seven years old. Since the last fare increase there has been significant inflation in the overall economy, in addition to rising costs that directly affect the industry, particularly gasoline, vehicles, maintenance and repairs. Chicago’s taximeter rates are less than those of other major U.S. cities, many of which have had relatively recent fare increases.
Proposed Change to Chicago Taximeter Rates
The undersigned licensees and chauffeurs request the following changes to Chicago taximeter rates as prescribed in the Municipal Code:
| Current | Proposed | |
| For the first 1/9 mile or fraction thereof: | $3.25 | $3.25 |
| For each additional 1/9 mile or fraction thereof: | $0.40 | |
| For each 36 seconds of time elapsed: | $0.40 | |
| For the first additional passenger over the age of 12 years and under the age of 65 years: | $1.00 | $1.00 |
| For each additional passenger, after the first additional passenger, over the age of 12 and under the age of 65 years: | $0.50 | $0.50 |
| Vomit clean-up fee: | $50.00 | $50.00 |
| Plus overnight surcharge 8pm to 6am. | N/A | $1.00 |
Petition
https://commoninja.site/b6582036-57bb-41f4-ae43-0fe73059cc85
Existing Taximeter Rates
Chicago taxicabs haven’t had a material fare increase since Jan. 1, 2016 when the rate per mile increased from $1.80 to $2.25. However, that’s all that was increased.
There was no increase to the flag pull (base fare), which hasn’t been increased since July, 2012, and the total fare increased by one dollar, no matter how long the distance travelled or time taken.
There was also no increase in the elapsed time of $0.20 per 36 seconds ($20.00 per hour), which hasn’t been increased in nearly 25 years.
Situational Analysis
As of Dec. 16, 2024, in the City of Chicago there were 6,999 taxicab licenses (“medallions”) authorized by the City of Chicago. However, only 2,554 of these were “Active” with the remainder being off the streets, classified as foreclosures (75), holds (3), inactive (61), revoked (145), surrendered (895), violation (3,266).1
Aging Fleet
The median Vehicle Model Year of Active Chicago taxicabs is 2016 with an average Vehicle Model Year of 2016.9.1
Rising Prices
Inflation as measured by the Consumer Price Index (CPI) has risen 29% since 2016 in the Chicago-Naperville-Elgin, IL-IN-WI (CBSA).2
Rising Income in Cook County
Between 2015 and 2022 per capita personal income in Cook County, IL rose 41%.2
Reduced Unemployment in Cook County
Between Jan. 1, 2016, and Oct. 1, 2024, unemployment decreased by 16%, from 6.9% to 5.8%.2
Rising Fuel Costs
Between Jan 1, 2016 and Nov. 1, 2024, gasoline prices have risen 75%. Gasoline prices have been volatile since 2016, particularly in the last four years. Between April 1, 2020 and June 1, 2022, the average price of unleaded gasoline in the Chicago-Naperville-Elgin CBSA more than doubled (206% increase), from $1.879 per gallon to $5.751. As of Nov. 1, 2024, the average price was reported at $3.03. Between Jan 1, 2016 and Nov. 1, 2024, gasoline prices have risen 75%.2
Increased Vehicles Prices
Among the 2,554 Active taxicabs operating in the City of Chicago, the most popular are the Toyota Camry (1,035), Toyota Prius (449), Toyota Sienna (386), and Toyota Rav4 (334). The base model Manufacturer Suggested Retail Prices (MSRP) have increased 15%, 15%, 31% and 18%, respectively between 2016 and 2024.3
Taximeter Rate Comparison with Notable Cities
Chicago taximeter rates have not increased since 2016. The price of a five-mile trip with five minutes of waiting time in Chicago is $15.92.
A five-mile trip with five minutes of waiting time would be:
- $24 in New York City, which had a fare increase in December 2022.4
- $23 in San Francisco.5
- $22.40 in Miami Dade County, which had a fare increase in July 2022.6
- $22.38 in Las Vegas, which had a fare increase in 2023.7
- $20.30 in Los Angeles.8
Conclusion
The Chicago taxi industry is due for a fare increase, warranted by rising costs to the economy and industry, and supported by rising incomes and low unemployment.
Sources
- https://data.cityofchicago.org/ as of Dec. 16, 2024
- Federal Reserve Economic Data, Federal Reserve Bank of St. Louis
- Source data: https://www.nyc.gov/site/tlc/passengers/taxi-fare.page
- Source data: https://codelibrary.amlegal.com/codes/san_francisco/latest/sf_transportation/0-0-0-54540
- Source data: https://www.miamidade.gov/global/service.page?Mduid_service=ser1572618493969359
- Source data: https://www.reviewjournal.com/business/tourism/valley-taxi-fares-set-to-increase-special-event-surcharge-being-developed-2790485/
- Source data: https://ladot.lacity.gov/sites/default/files/documents/taxicab-rates-2023.pdf
