The Unlikely Savior Of NYC Cabs

Private industry often points to governmental regulations as a source of added expense that makes them less competitive. In this case, NYC's requirement two years ago that taxis accept credit cards has resulted in growth in ridership and revenue.

1 minute read

November 9, 2009, 6:00 AM PST

By Irvin Dawid


Paper or plastic? Cabbies dreaded the idea of being forced by a new city regulation to accept plastic, but lo and behold, their customers like it, and its showing....in tips as well as more fares.

"Overall ridership and revenue have increased. More and more fares are being paid with credit cards, even for shorter rides. And tips for drivers, usually an early casualty of tough times, are up sharply, double over the pre-plastic days."

Interestingly, NYC was actually late in coming to requiring plastic. However, unlike other cities, like LA, the city "pioneered a customer-friendly system that required no signed receipts, no minimum payment and an interactive device that let passengers swipe the card and add tips themselves."

Consequently, unlike most other cities (including LA), "revenues have risen about 13 percent from the end of last year, according to data collected by the city's Taxi and Limousine Commission. And tips, which hovered around 10 percent when cab rides were cash only, averaged 22 percent on credit-card transactions this fall."

Thanks to Mark Boshnack

Sunday, November 8, 2009 in The New York Times - N.Y/Region

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

View of residential street in Los Angeles with palm trees and hazy city in distance.

Rebuilding Smarter: How LA County Is Guiding Fire-Ravaged Communities Toward Resilience

Los Angeles County is leading a coordinated effort to help fire-impacted communities rebuild with resilience by providing recovery resources, promoting fire-wise design, and aligning reconstruction with broader sustainability and climate goals.

April 27 - Los Angeles County Chief Sustainability Office

Entrance sign for San Jose-Santa Clara Regional wastewater treatment facility.

When Borders Blur: Regional Collaboration in Action

As regional challenges outgrow city boundaries, “When Borders Blur” explores how cross-jurisdictional collaboration can drive smarter, more resilient urban planning, sharing real-world lessons from thriving partnerships across North America.

April 27 - * A Placemaking Journal

Rendering of Penrose Roundabout in Philadelphia, Pennsylvania.

Philadelphia Is Expanding its Network of Roundabouts

Roundabouts are widely shown to decrease traffic speed, reduce congestion, and improve efficiency.

April 27 - WHYY