Report: Cabbies Get Bigger Tips on Credit Card Fares


In 2007, when they started installing credit-card readers in cabs, YellowCabNYC found some drivers resistant to the change. A commenter said, “I get yelled at 3 out of the 4 times for using credit card” even when notifying the driver in advance.

The hacks may have been conflating the readers with other unpopular technology interventions, such as GPS devices. In any case the New York Times finds the drivers happy with the card readers and the increased revenue they generate. The Taxi and Limousine Commission tells them tips this fall have averaged 22 percent on credit-card transactions, which is significantly higher than what they get in cash transactions. (The recent MTA surcharge on fares will probably further boost gratuities.)

One frequent business rider says he uses cards instead of cash because it’s easier to keep track of the receipts, and the Times suggests the fall-off in town car service may be attributable to businesses redirecting employees to cabs for this reason.