Business & Tech

Framingham Taxi Fares To Increase

This will be the first time the fares will increase in 10 years, allowing local companies to compete with ride-hailing services.

FRAMINGHAM, MA — To keep up with ride-hailing services like Uber and Lyft, taxi companies in Framingham are raising their fares for the first time in over ten years. The City Council unanimously voted on Tuesday to allow a modest fare increase, but did not yet decide on reducing the local inspection and licensing fees. The high overhead costs and strict oversight are an additional expense local cab companies have to pay that ride-hailing services do not.

Under the new rate, cab operators will charge $3.50 for the first 2/7ths of a mile plus $0.50 for each additional 1/7th of a mile in each trip. The previous rate charged $2.50 for the first 2/6ths of a mile and $0.50 more for each additional 1/6th of a mile. A five mile trip under the new rates will cost $20 whereas under the old rates it was $16.50. Cabs can bill up to $27 per hour.

The council was supportive of the rate increase, as Jo-Anne Thompson, president of Tommy's Taxis explained the cost of running the business has increased. The minimum wage increase to $12 an hour and mandatory sick pay has increased labor costs, Thompson said, adding that her employees are career cab drivers who depend on the income. Tommy's Taxis is one of two cab companies licensed in Framingham— the other is JFK Transportation.

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Thompson said she would like to make the rates effective by May 1 but that is dependent on how quickly the company can recalibrate the meters in all the cabs.

While the rate increases were much needed, the other urgent issue was the reduction of fees. Licensing and inspection fees add up to about $3,500 per year for Tommy's Taxis, Thompson said. Each cab must be inspected by the police department, costing $20 per car and inspected by the state. The licensing fee for each car is $35 and each meter must be sealed and measured against the metered mile by the city’s inspector of weights and measure which costs $65 per car. With 27 cabs in her fleet, Thompson said the costs add up quickly.

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Thompson made it clear that she is happy to have the inspections and licensing done, which sets her apart from her ride-hailing competitors. She rattled off the list of background check measures she personally does for each driver and the police department's work in verifying safe drivers are on the roads as well as safe vehicles. "I'm not necessarily looking to eliminate the inspection itself, I'm more interested in eliminating the expense," Thompson said.

The City Council agreed to get a description from the Chief of Police as to what services the department provides to cab companies and the value of those services to further discuss the fee structure. The council also agreed to refer the question of changing the policy to the Rules and Ordinances Subcommittee who will give the council a recommendation.

Tuesday's discussion was open to the public and a District 7 resident, Bill Lynch, spoke in support of a fee reduction. Lynch suggested offering local cab companies a flat fee for inspections so that if issues arise during the year, there are no surprise expenses to deal with. He made the point that restructuring the fees was a key way to keep local businesses in the city. "Tommy's Taxis has been here since I can remember," Lynch said, "I'm tired of seeing businesses pack up and leave, you know, here's our chance to do something — maybe think outside the box."

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