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Jewish World Review May 27, 2008 / 22 Iyar 5768 Fair fares By Rabbi Dr. Asher Meir
Given that cab rides are regulated with standard fares, and cab drivers are required to take customers by the shortest route, the cab driver's demand for a fixed fee above the standard rate is extortion. He is taking advantage of the fact that he has you "over a barrel" since he knows it is not worth the extra few dollars (or shekels) he is demanding for you to get out of the cab and hail another one (who in all likelihood will offer you the same deal). Jewish law takes a dim view of such extortion, and in many cases holds that when a person is taken advantage of in this way, he is required to pay only the going price. Here is an example:
Following this same logic, most taxi and limousine commissions have rules stating that taxi drivers are not allowed to charge extra for services that are not "extras", and if they do customers are required to pay only the regular price. (Sometimes they state that the customer is required to pay only what appears on the meter, but since the meter will be blank this would be a bit unfair.)
However, I also want to look at the taxi driver's point of view. We have to ask ourselves, why are tactics like this more prevalent in some times and places than in others?
In most areas the taxi fare is composed of three parts: a flat rate for getting a cab, a per-mile (or per-kilometer) charge, and a per-minute waiting charge. If these three charges are set fairly, and the number of cabs granted permits (medallions) is reasonable, then drivers will have no incentive to engage in this kind of trick. If the flat fee is high enough they would rather get you to your destination quickly and pick up someone else. But in some places the fee structure is poorly structured, encouraging mischief.
Sometimes the problem is even worse: permissible fares are just too low to allow cabbies to make an honest living. This is why the only cab drivers in some US cities are poor immigrants living on a few hundred dollars a week. In this case the ethical course of action for them is not to gouge customers but rather to lobby for a change in the rules or perhaps even go on strike. Still, it is possible to understand the cab driver's point of view.
The Talmud affirms that local authorities are entitled to regulate commerce: "And the townspeople are authorized to regulate weights and measures and wages, and to punish offenders". (2) However, this authority needs to be used in a responsible way that doesn't take unfair advantage of the regulated. Indeed, on the very next page of the Talmud we learn that this authority has to be subject to oversight to ensure that it is in the public interest.
So the simple answer to your question is, chances are local regulations allow you to passively consent to an unfair price and in the end pay only whatever the fair price is (you would have to estimate this). Even better would be to file a complaint, if you have the time and energy. This is the best course of action if you feel you are being taken advantage of.
However, if you have reason to believe that it is the cab driver who is being taken advantage of, by a fee structure that doesn't allow him to make an honest living, it may be that the best thing is just to give the driver a break and agree to the suggested price.
NOTE: The above analysis is predicated on the assumption that the flat price is meant to get a higher rate, not to evade taxes or charges. Even if you give in to the driver's threats, you should demand a receipt for the price you end up paying.
SOURCES: (1) Babylonian Talmud, Bava Kamma 116a (2) Babylonian Talmud, Bava Basra 8b
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JWR contributor Rabbi Dr. Asher Meir, formerly of the Council of Economic Advisers in the Reagan administration, is Research Director of the Business Ethics Center of Jerusalem, Jerusalem College of Technology. To comment or pose a question, please click here.
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