New York City taxi fares rising for first time in a decade

Taxi rides are about to get a lot pricier in New York City.

The city's Taxi and Limousine Commission on Tuesday voted to hike metered fares by 23%, marking the first such increase in a decade. Passengers are also looking at paying more in rush hour and overnight surcharges, along with higher airport flat rates, according to the TLC, the agency that licenses and regulates New York City's taxi cabs and other for-hire vehicles. 

Base fares for yellow and green taxis are going up to $3 from $2.50, with unit rates rising to 70 cents from 50, according to documents detailing the approved proposal. Rush-hour trip and overnight fees are going to $2.50 and a buck, respectively. Hailing a cab to LaGuardia Airport will cost an additional $5 and flat fares to Kennedy Airport will be $70, up from $52. 

Expected to take effect before the end of the year, the increases will also bring along a 7% per-minute pay raise for app-based Uber and Lyft drivers, with per-mile compensation jumping by 24%, according to the commission.

"Raising taxi fare rates and minimum pay for high-volume drivers is the right thing to do for our city," TLC Commissioner David Do said in an emailed statement to CBS MoneyWatch. "This is the first taxi fare increase in 10 years, and these raises will help offset increased operating expenses and the cost of living for TLC-licensed drivers. We are confident that today's unanimous Commission vote will keep our taxi and FHV fleets sustainable and ready to serve New Yorkers."