A study conducted by a New Zealand based company known as Digital Hothouse concluded that New Zealand holds the current record for the highest taxi fares.
About the Study
The study was conducted by calling taxi companies at various countriesaround the world and comparing rates forcomparabledistances. These countries included England, Australia, Russia, Spain and the United States.
New Zealand’s rates were determined to be $4.50 for every kilometre for airport fares. This was compared against airport fares in Australian cities such as Melbourne, Perth and Sydney as well as fares for taxi rides to the Heathrow Airport in London. That latter one actually came in second, just over New Zealand’s rate. A ride from the city of London to the airport cost $105.
The study made use of Google maps to determine distances and figure out rates based on distance. They did not include some of the airport fees that are often included in taxi fares in some countries and by some taxi companies. These could affect the cost of the fare, but they were considered to be negligible for the overall purposes of the study.
Why Are the Rates So High?
The reason for these fares is due to a number of factors. Part of it is because Auckland is such a congested city. It takes a long time to get anywhere andtaxi drivers have to be quite skilled to get aheadof the traffic. There is also no other real choice for people who have no cars of their own. It’s either the taxis or walking for most of them.
There is no great difference in service between newZealand taxis and anywhere else. It is not like they are vacuumed more often or that their service is friendlier. Their cars are likely cleaned using vacuum cleaners as often as most other taxis- at the end of the day. But there is another big factor that is causing the prices to soar.
Now fares were expected to lower when the industry was deregulated a few decades ago, but it has had the opposite effect. Fares have gone up because all the companies know that customers will pay those fares. No one wants to lose out on fare prices when they know they can get more out of their customers.
So with everyone vying to make the most money, no company is cutting the customers a break, and people are becoming upset about the exorbitant fares. No one is willing to take the first step to lower their prices, because they know that everyone else will follow suit. Then they will all be back in the same position that they were before, but they would be making less money.