A PILOT PROGRAM THAT LETS TAXI RIDERS in San Francisco compare taxi prices to other ride-hailing options was made permanent this week by the San Francisco Municipal Transportation Agency.
The two-year pilot “taxi upfront fare” program resulted in increased earnings for taxi drivers and a sharp increase in the number of new drivers applying, according to the SFMTA.
The program uses partnering taxi e-hail apps that let users see the price of a taxi ride before agreeing to take the trip in the app. The companies Arro, Flywheel and YoTaxi SF provide the taxi-hailing services.
Riders can also see the price of a taxi ride in third-party ride-hailing apps like Uber and Lyft, and select that option in the third-party app.
About half of the city’s 1,300 taxi drivers participated in the pilot program. Taxi drivers who participated in the program saw a roughly 25% increase in monthly earnings.
App-based rides resulted in more taxis populating the city’s outer neighborhoods, which have been historically underserved by the taxi industry, according to the SFMTA.
About 300 new taxi drivers were hired during the two-year pilot period, about five times as many as in previous years, when an average of about 30 new drivers were hired annually.
SFMTA director of transportation Julie Kirschbaum said the program will help keep the taxi industry competitive at a time when there are many options available to commuters.
“We’re thrilled to give San Franciscans and visitors a new and more convenient way to access the city’s taxi services and to have the peace of mind from knowing their fares before taking a trip,” Kirschbaum said in a statement.
Zee Sinada, who owns a Yellow Cab medallion, said in a statement that he was initially skeptical of the program, but was won over by the results.
“I begged the SFMTA to keep this program going, because there wasn’t enough business for the taxi drivers. But now, riders have more choices, and taxi drivers do, too. Financially, this is a difference of $600-$700 in extra earnings a week we’re talking about — this makes such a big difference,” Sinada said.
Drivers who utilized third-party apps earned about $2,350 per month from those trips alone in the second quarter of 2024, the most recent data available for San Francisco’s program.
Paratransit service did not see significant changes during the pilot program, which was set to expire at the end of June.
MJ Keller, head of U.S. taxi partnerships at Uber, said the arrangement was benefiting both taxi drivers and ride-hailing companies.
“By integrating taxis onto our platform, we’re providing taxi drivers with more flexibility and increased earnings opportunities while giving riders access to new transportation options,” Keller said. “We believe this program continues to be a win for drivers, riders, and the city of San Francisco, and we’re excited to support its continued growth.”