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New York City’s Taxi & Limousine Commission (TLC) held a public hearing on July 16th to solicit input on yellow cab fares, driver earnings, and broader taxi industry dynamics.
Across more than an hour of public testimony and extensive written submissions—from veteran drivers, the New York Taxi Workers Alliance (NYTWA), and the Metropolitan Taxicab Board of Trade (MTBOT)—a picture emerged of an industry in the early stages of recovery from an existential crisis, yet still in need of major structural reform.
Below are the key takeaways.
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Click here for the direct link to NYC TLC public hearing | Click here for the direct link to NYC TLC public hearing written comments.
1. Opposition to Eliminating $3 Drop Fare
Eliminating the $3 “drop” fare—the initial (base) amount a driver gets paid (i.e., not including surcharges) when a passenger enters a yellow cab—sparked near-universal opposition from drivers.
For many, it is a critical source of income, notably for short trips.
Erhan Tuncel, a taxi driver of 26 years, stated:
“The $3 drop must remain…it would be impossible to work the $3 into the fare structure that pays off for the short trips.”
Richard Chow, a medallion owner-driver, echoed this sentiment as well:
“Please don’t drop the $3..seventy percent of this job is short trips.”
NYTWA, in written comments, argued the drop is the only portion of the initial fare that goes directly to the driver, noting that even the $1 improvement (TIF) surcharge does not support a driver’s cost of living.
“It would be challenging, if not impossible, to spread out the $3 over shorter trips… the $3 drop is the only portion that goes directly to pay drivers…The $3 drop is the main upfront source of driver income on a fare – and it cannot be removed in the name of reducing passengers’ initial trip costs.”
Peter Mazer of the Metropolitan Taxicab Board of Trade (MTBOT) didn’t explicitly oppose or support eliminating the drop, but offered a more technical perspective in written testimony.
MTBOT essentially pointed to the “sticker shock” passengers might experience upon entering a cab—where the meter can show $7.75 before the ride begins (i.e., taximeter often starts at $7.75 (!) — $3.00 drop + $1.00 Taxi Improvement Fund (TIF) + $2.50 MTA surcharge + $0.75 MTA congestion fee + $0.50 MTA NYS surcharge 🧐).
Rather than focusing solely on preserving the drop, MTBOT urged the TLC to take a comprehensive approach to any future fare restructuring, warning that any changes must ensure drivers are compensated fairly while also addressing passenger concerns about cost transparency (and sticker shock). Their position leaves the door open to adjusting fare components—including the drop fare—if part of a larger rebalancing that protects short-trip economics.
2. NYTWA: No Fare Changes Without a Study
The New York Taxi Workers Alliance (NYTWA) delivered a firm message: no changes to yellow cab fares should proceed without a full, data-driven study of the industry’s current economics—just as the TLC has done for Uber and Lyft (“HVFHV”) drivers.
NYTWA’s written comments laid out a clear policy framework. The TLC has relied on commissioned research when setting HVFHV pay standards (e.g., Parrott & Reich, 2018 and 2024) and should apply the same level of rigor before altering the taximeter.
“The TLC must apply a similar data-driven approach to the yellow cab pay standard and yellow cab economics, including the state of street hails; it would be irrational to apply a different approach to the yellow cab sector than the one it uses for the HVFHV sector.”
The influential driver advocacy group also called for an analysis of MTA surcharges, short-trip economics, e-hail impacts, and how to implement a cost of living adjustment for yellow cab drivers every year, as is done for Uber and Lyft drivers
3. Uber-Yellow Taxi Integration Is Working—But Drivers Say It’s Not Enough
Uber’s Josh Gold told the TLC that its yellow taxi integration (with Curb) dispatched over 7 million trips in the past year, calling it a “win-win-win” for drivers, owners, and the City—which remains the guarantor of more than $400 million in restructured medallion debt. He urged the Commission not to disrupt the program by changing upfront pricing, which he said “ensures transparency for riders and predictability for drivers”.
However, both written and spoken public testimony challenged Uber’s narrative. In his written comments, veteran driver Edward Castellanos said most flat fares dispatched by Uber (via Curb) fall between $9 and $17, far less than what he would earn on the meter.
NYTWA’s leader, Bhairavi Desai, described Uber’s taxi dispatches as “supplemental”, arguing the platform only uses yellow cabs to fill temporary demand. NYTWA also urged the TLC to require fare breakdown transparency for all e-hail trips.
4. MTA Surcharges Are a Major Complaint—And a Major Driver of Sticker Shock
MTBOT, in a technically detailed written submission, reported that surcharges now represent ~18% (👀) of all taxi revenue.
In May 2025 alone, they noted, yellow cab riders paid approximately $19 million to the MTA out of $109 million in total taxi revenue, representing $1,900 for each cab in service, and about $7.55 for each hour a yellow cab was actively working. MTBOT said that these MTA surcharges are responsible for reducing driver’s real earnings.
NYTWA echoed MTBOT’s sentiments, arguing that the real cause of fare sticker shock isn’t the $3 drop fare—it’s the front-loaded, MTA surcharges.
In their written comments, they stated:
“The TLC must work with the City and the State to repeal the MTA taxes, which make up a larger portion of the fare and do not go toward drivers’ income or expenses.”
The cumulative message: the MTA surcharge regime makes short trips unworkable, obscures real fare transparency, and diverts revenue away from drivers and owners—while the public wrongly blames meter rates for high prices.
5. Inflation Is Up—Fare Hasn’t Kept Pace
In written testimony, MTBOT warned that rising costs—related to insurance, vehicle acquisition, general inflation, and the wheelchair accessible vehicle (WAV) mandate—have outpaced the current fare structure and threaten the industry’s financial stability.
Peter Mazer, MTBOT’s General Counsel, noted that insurance premiums can reach upwards of $12,000 annually for a taxi with multiple drivers. He cautioned that rates could rise even further following the insolvency of American Transit Insurance Company, which has long been—and arguably still remains—a key player in the taxi market.
6. Bring Back Door Stickers
A wide coalition of drivers called for restoring rate stickers on taxi doors. They argue without clear fare signage, passengers are confused or distrustful—especially when facing “sticker shock” on short trips. Many blamed this absence for lost street hails and a worsening public perception.
7. Taxi Stand Enforcement Is Weak —Drivers Say TLC Prioritizes Policing Them
Several drivers testified that Uber vehicles and private cars are routinely blocking or abusing taxi stands—especially at major pickup points like Penn Station, Hudson Yards, and Javits Center. These unauthorized pickups reduce legal fares for yellow cab drivers and contribute to growing resentment over uneven enforcement.
Harjot Singh, a part-time student and medallion driver, gave some of the most detailed testimony on the issue:
He described Uber drivers parking in TLC-regulated taxi stands at Penn Station and soliciting passengers directly.
He noted that Uber and private cars regularly cut in front of waiting yellow cabs, disrupting queues and adding to driver wait times.
He emphasized that TLC enforcement officers often target licensed drivers, issuing tickets for minor violations, while ignoring illegal pickups by unlicensed or app-based vehicles.
TLC Chair David Do acknowledged Singh’s concerns and said TLC would deploy officers to Penn Station. Singh’s testimony, we believe, revealed a deeper sentiment: TLC is seen as policing its own licensees more harshly than illegal operators.
8. Medallion Relief (MRP) Must Stay Open
Several speakers urged the TLC to keep the Medallion Relief Program (MRP) open, particularly for owner-drivers whose lenders refused to participate or whose loan restructuring is still pending. NYTWA emphasized that the debt crisis is not over for all impacted driver-owners.
Dorothy LeConte, a 38-year yellow cab veteran, added both emotional and practical weight to the discussion, describing how she continues to work hard at age 68 while struggling to repay a medallion loan—reportedly from S&R—that has yet to be restructured.
Wain Chin, another medallion owner-driver, echoed these struggles. He testified that his bank—reportedly OSK—is refusing to participate in the city’s program, and he urged the TLC and the City to work directly with lenders to resolve the remaining few hundred cases.
9. Credit Card Fees: Who Should Pay?
What began as an offhand comment turned into one of the hearing’s more animated debates: Should yellow cab medallion owners—including driver-owners—continue absorbing the roughly 3% credit card transaction fees, or should passengers bear (or share) the cost?
TLC Board Commissioner Kenneth Chan notably suggested that the TLC consider negotiating lower rates, citing the substantial transaction volume generated by NYC taxi trips—similar to how other large merchants leverage their scale.
MTBOT’s Peter Mazer later clarified:
“The transaction fees are paid by medallion owners. Drivers get the full revenue… But that’s really an issue for owner-drivers who do have to bear the burden.”
He noted these fees are standard across industries, comparing them to what grocers or retailers pay:
“If you own a grocery store, you pay pretty much the same fees.”
The exchange sparked broader questions: In a system where nearly all fares are now digital, should medallion owners still carry 100% of the credit card processing fees?
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10. Not All Taxis Can Receive Uber E-Hails?
TLC-licensed yellow cab driver Kuber Sancho-Persaud, whose father was also a NYC cab driver for 35 years, testified that his taxi uses Helix, a TPEP / payment system not integrated into the Uber (or Access-A-Ride) e-hail program. As a result, he receives no app-dispatched trips at all (or least from Uber) and is only servicing street hails, which he said are increasingly unreliable.
“My taxi system has not gone into a contract with Uber... I have been working off of only street hails. It’s been really tough...”
11. Let Taxis Use Bus Lanes When Occupied
In a written submission, Alex Korenkov, General Manager of S&R Medallion Corp, proposed that yellow cabs carrying passengers be permitted to use NYC’s bus lanes. He argued that taxis are already subsidizing the MTA via per-ride surcharges and should be treated as part of the broader public transit ecosystem.
12. Cap Cars, Like It’s 1937
In one of the most sweeping policy proposals submitted, a veteran yellow cab driver called for the TLC and City Council to reimpose extremely strict limits on the number of for-hire vehicles (FHVs) permitted on city streets—echoing the logic behind the 1937 creation of the medallion system.
“The solution is the same as it was in 1937—the number of for-hire vehicles allowed to do business on the streets of NYC must be significantly reduced.”
The driver pointed to the 2018 City Council cap on new FHV licenses (a/k/a TLC Plate Cap) as a partial correction but argued that the current total—still over 80,000 FHVs—is “far, far too many.” He proposed a phased reduction in licenses, managed by TLC and approved by the Council, with ride-hail platforms like Uber and Lyft selecting which vehicles exit the market each year. The goal: restore supply-demand balance so that both FHV and yellow cab drivers can earn a livable wage.
His written comments reframes the income crisis as a supply-side problem—suggesting that no pricing reform will stick unless the City tackles the unchecked growth of the ride-hail fleet.
13. Street Hail Decline Is a Design Problem, Not Just an App Problem
Beyond Uber’s market power, speakers noted physical design changes—bike lanes, curb redesigns, and taxi stand removals—as eroding the visibility and functionality of yellow cabs.
14. Rider Experience Is Slipping—And Passengers Are Noticed Less
One written submission described today’s yellow cabs as “tanks”—sealed doors, dark windows, no air circulation. While riders weren’t the focus of most testimony, several commenters (and TLC Board Commissioner Andrea Bierstein) emphasized that improving the passenger experience is key to long-term survival.
15. Flat Fare to LGA: Simplicity, Transparency, and Competitiveness
A flat fare to LaGuardia Airport has been proposed as a way to simplify yellow taxi pricing and make it more competitive with Uber and Lyft. Supporters say it would reduce confusion for riders and help promote taxis as a more transparent and affordable option. One fleet operator submitted a comment stating, “We are supporting a flat rate to LGA” and suggested that all airport fares be posted on taxi doors and windows to highlight the price advantage over ride-hail apps. The idea aligns with broader calls to make fares clearer and reduce sticker shock from hidden surcharges.
The Takeaway
This wasn’t just a fare hearing—it was a warning. From hidden app economics to MTA-driven sticker shock, drivers described a system that’s increasingly unsustainable. The core demand: keep the $3 drop, and don’t touch the meter until you understand the street—and the low-paying e-hail trips that now account for nearly 1 in 5 rides.
Also available on YouTube ⬇️
📺 Table of Contents – TLC Public Hearing on Yellow Taxi Fare Structure (July 16, 2025)
00:00:00 – Opening Remarks TLC Chair David Do opens the meeting and outlines the goals of the hearing. Commissioners introduced. Topics include fare structure, drop fare, e-hails, MTA surcharges, and price transparency. 00:03:01 – Board Commissioner Andrea Bierstein calls for testimony to also consider the passenger perspective. 00:04:19 – Sherryl Eluto (TLC General Counsel) explains the hearing format and introduces the first speaker. 🚕 Public Testimony 00:05:02 – Ambro Mohamed criticizes credit card fees, TLC licensing policy, Uber shuttle at airports, and lack of TIF payment. 00:07:54 – TLC Board Commissioners respond re. social security requirements, Uber Shuttle oversight by Port Authority, and transaction fees of ~3%, not $5. 00:13:53 – Peter Mazer (MTBOT) addresses shortfall of 2022 fare hike, rising insurance and WAV costs, MTA surcharges, and credit card transaction fee burden on owner-drivers. Proposes comprehensive fare restructuring 00:23:30 – Michael Simon advocates for stronger app-based integration for taxis, better medallion visibility, and airport e-hail parity. 00:26:25 – Vinod Malhotra proposes reducing drop fare and rush hour surcharge; criticizes e-hail trip values and the absence of rate stickers. 00:30:03 – Allison (Alli) Langley (NYTWA Staff Attorney) calls for a comprehensive TLC-commissioned study on yellow cab economics before any rule changes. Compares to Uber/Lyft pay study. 00:34:25 – Josh Gold (Uber) praises yellow cab dispatch integration, reports 7M+ rides referred. Defends upfront pricing and urges TLC to preserve it. 00:36:09 – Bhairavi Desai (NYTWA Executive Director) pushes back on Uber’s claims, calls e-hails "supplemental." Advocates for rate stickers, street hail prioritization, and repeal of MTA surcharges. 00:40:08 – Harjot Singh details Uber drivers blocking taxi stands at Penn Station and Hudson Yards. Calls for stricter TLC enforcement. Notes impersonation by unlicensed drivers and lack of new taxi stands. 00:46:04 – TLC Commissioner Response (David Do) acknowledges enforcement gaps and promises more targeted action at high-demand locations like Penn Station. 00:48:39 – Richard Chow urges TLC to keep the $3 drop, restore door stickers, and enforce transparency on e-hail payout breakdowns. 00:52:13 – Wain Chin supports keeping the $3 drop. Criticizes the MTA surcharge and calls for TLC/state cooperation to reduce it. Mentions still-unresolved medallion debt. 00:55:13 – Erhan Tuncel says he’s making fewer trips for the same income as a decade ago. Blames MTA fees for sticker shock. Urges TLC to preserve the drop fare and restore rate stickers. 00:58:58 – Dorothy LeConte veteran driver (38 years) describes growing hardship, Penn Station changes, lack of transparency in fare breakdowns, and unfulfilled S&R medallion loan restructuring. 01:02:14 – Kuber Sancho-Persaud Explains challenges of being a Helix-system driver excluded from e-hail dispatch. Advocates for door stickers and MTA surcharge relief. 01:05:32 – Golam Talukder criticizes low-paying flat fares from Uber. Requests TLC to enforce metered parity and restore transparent airport rate signage. 01:08:59 – Closing Remarks (Chair David Do) summarizes trip growth, medallion debt relief milestones, and reiterates TLC's commitment to ongoing reform and engagement.
