The regulators allowed taxi companies to levy surcharge during peak hours - the reasoning is that the hire fares will encourage more taxi drivers to come forward to pick up passengers. But this has an unintended consequence - many taxi drivers are not available during the short period before the surcharge come into effect, creating an artificial shortage.
In other cities, there is no peak hour surcharge, so they do not have this artificial shortage. Perhaps the taxi drivers are already compensated during the peak hours based on travelling time, in addition to distance. If they are caught in a slow moving traffic, they will get additional fare based on the time.
Perhaps this is a new way to fix the taxi fares - based on distance and travelling time. If the fare is low - where the taxi is stuck in congestion, the taxi driver can get an additional fare based on the time spent. For example, the fare can be $0.60 per km or $0.40 per min, whichever is higher. If the trip is 15 km and took 20 min, the fare is the distanced based fare of $9 (as it is higher than the time based fare of $8) plus a flag down fare. In normal circumstances, the distance based fare is more than adequate, so the time based fare does not need to come in.
I believe that this fare system may be easier to understand and can compensate the taxi driver during peak hours when the traffic is slow.
In other cities, there is no peak hour surcharge, so they do not have this artificial shortage. Perhaps the taxi drivers are already compensated during the peak hours based on travelling time, in addition to distance. If they are caught in a slow moving traffic, they will get additional fare based on the time.
Perhaps this is a new way to fix the taxi fares - based on distance and travelling time. If the fare is low - where the taxi is stuck in congestion, the taxi driver can get an additional fare based on the time spent. For example, the fare can be $0.60 per km or $0.40 per min, whichever is higher. If the trip is 15 km and took 20 min, the fare is the distanced based fare of $9 (as it is higher than the time based fare of $8) plus a flag down fare. In normal circumstances, the distance based fare is more than adequate, so the time based fare does not need to come in.
I believe that this fare system may be easier to understand and can compensate the taxi driver during peak hours when the traffic is slow.
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