Taxi cab rates within the city will rise by $1 come October.
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There are three taxi zones within the city, each of which would increase by $1, effective Oct. 1:
- Zone 1 — $5 to $6
- Zone 2 — $6 to $7
- Zone 3 — $7 to $8
The rate for three or more passengers to any zone is $2 per person. Senior citizens would continue to receive a $1 discount off the regular rate.
City Council approved an ordinance (O-30-21) amending taxi rates, following a public hearing during its regular meeting on Monday night. There were no comments from the public or City Council members. The governing body originally introduced the ordinance at its July 12 meeting.
Rahway taxi owners submitted a proposal for an increase in a June 8 letter to Mayor Ray Giacobbe, Jr. and City Council. Thomas J. Maye, president of 95-year-old Station Cab, Inc., said that since the last increase in rates, the “taxi industry has been financially impacted by the advent of Ride Share services and global COVID-19 Pandemic.” The cost of insurance and fuel have increased 25% and the cost of living allowance (COLA) has grown by 16.5% over that time.
The increase is an average 16 percent overall. It’s the first since 2013 when City Council also approved a $1 hike for each zone. At that time, taxi cab owners cited an 18-percent increase in the Consumer Price Index (CPI) and a jump in the cost of fuel of 46 percent since the last increase. Previous to that, the last rate hike was in 2005.
Zone 1 is essentially from the train station to the borders of St. Georges Avenue, West Hazelwood Avenue and Lawrence Street. The borders of Zone 2 are Madison Avenue, West Scott Avenue, Route 1 and the city’s southern border. Zone 3 basically covers everything outside of Zone 2 to the city’s borders.
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