The city of Detroit's official rate for taxicabs is $1.60 per mile with a $2.50 base fare, though this isn't obvious to many who have recently ridden in Detroit cabs. That's because of a common -- and illegal -- where Detroit cab drivers will charge passengers flat (often exorbitant) rates instead of setting their meters.
Many cabbies argue that the current rates, which were set 13 years ago, are too low for them to make a decent living in 2014. They also argue that they are being held to higher standards than new competitors Uber and Lyft, whose drivers aren't required to pay registration fees or carry the same level of insurance as traditional cab drivers.
According to a recent story in the Detroit Free Press, "Detroit also permits Uber and Lyft drivers to charge fare rates based on fluctuating demand, which Uber calls 'surge pricing.'"
The city is now considering reforms to the way it regulates cab and ride-sharing services.
According to the Free Press, Melvin Butch Hollowell, the city's top lawyer is quoted saying, "We are going to clean up our act as it relates to the taxi cab and ride-sharing industries in this city."
This eventually may include higher fares in traditional cabs and tighter regulations of services like Uber and Lyft.
Read more in the Detroit Free Press.
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