Integrated Global Business Solutions (IGBS)

Business Alert from February

Beware of taxicab scams

Whether traveling for business to a major U.S. city or vacationing in an exotic foreign destination, it's wise to use caution when renting a taxicab. In less developed countries, regulation of taxi companies is often non-existent, but even in cities like San Francisco and New York, caveat emptor applies. When purchasing a ride from a taxi driver, you do so at your own peril.

Here are some tips to avoid being "taken for a ride" by an unethical cabby:

Use an established taxi company. Ask at the airport information desk or hotel concierge for legitimate companies that are regulated by the local authority. Anyone with a private vehicle and a little ingenuity can tack on signage and add a roof-top light to lure unsuspecting customers. Often airports will post warning signs that tell travelers how to spot fraudulent taxi drivers. Be sure to heed such warnings.

Find out what's reasonable. Again, the airport information desk is often a great resource. They can tell you what types of surcharges or extra fees are reasonable and which are unusual or inappropriate. Is it acceptable for the cabby to charge you extra for baggage, rush-hour service, or the use of a mini-van? Can the driver legitimately charge a per-passenger rate (keeping customers from splitting the cab fare)?

Plan ahead. Buy a map of the area and learn the best routes from Point A to Point B. If the driver takes too many "secret shortcuts" or gets lost, pull out the map and direct the driver's attention to a better route. If you're going out for the evening, take a business card with the phone number of a reputable cab company and call the cab when needed.

Take notes. When you get in the cab, write down the cab's registration number. Make sure no time is left on the meter from the previous ride. Get a signed receipt that shows the pick-up and drop-off points. This documentation will come in handy if you're forced to contact the local regulatory authority, and it will alert the driver that he's being watched.

If you think you've been scammed by a cab driver, contact company management or the local authority. You should expect a safe and reasonably priced ride any time you rent a taxi.

The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or business consulting.

If you have any questions or comments contact an IGBS senior business consultant at 703.934.6170