NYC Taxi Industry Shows Resilience Amidst Rideshare Competition and New Fees
New York City’s iconic yellow taxis are experiencing a surprising resurgence, bucking a national trend that saw ride-share services dominate urban transportation. While taxis struggled in other major cities, NYC cabs are growing by more than 22% year-over-year, , February 3, 2026, according to recent reports.
This comeback occurs as both taxi and ride-share passengers in New York City brace for increased costs. A series of fee hikes, implemented since 2019 and with further increases planned, are adding to the price of every ride. Since 2019, yellow cabs have included a $2.50 congestion fee, while app-based services like Uber and Lyft have charged $2.75. These fees apply to trips starting, ending, or traveling through Manhattan south of 96th Street.
By mid-June, the final phase of congestion pricing will add an additional $1.25 to taxi fares and $2.50 to app-based rides, potentially bringing the total fee to as much as $5.25. Cabs will not be subject to the $15 toll for entering Manhattan below 60th Street during daytime hours, but riders will pay the additional fees for traversing the designated zones, as confirmed by an MTA spokesperson.
The added costs are causing concern among drivers. Destiny Maduka, a taxi driver for 22 years, expressed worry that the new fees “are gonna kill us,” adding that the existing congestion fee is already hurting business.
Despite the rising costs, incidents highlighting issues with taxi fares are surfacing. Recent videos circulating online show confrontations between passengers and drivers over pricing. In one instance, a woman refused to pay her fare, alleging she was overcharged, and a passerby ultimately settled the bill to resolve the standoff. Another video depicts a woman attempting to leave a taxi without paying, prompting the driver to hold onto her luggage.
Concerns about potential scams are also being raised. One Reddit user questioned the legitimacy of taxi fares in NYC, prompting advice to check the displayed fare on the screen in the back of the cab and to use the payment device attached to the divider.
The situation is further complicated by reports of more serious incidents. In , a masked man allegedly shot at a New York City taxi driver after being unable to pay his fare, leading taxi officials to issue guidance to drivers on how to avoid similar situations.
A recent report highlighted a specific journey – a taxi ride from Manhattan to Newark – costing $80 for a 35-minute trip, underscoring the potential for high fares. The Taxi & Limousine Commission (TLC) provides information on taxi fares on its website, nyc.gov.
The interplay between traditional taxis and ride-share services continues to evolve in New York City, with the taxi industry demonstrating unexpected resilience in the face of competition and increasing financial pressures.
