Monday, July 5, 2010


Taxi! How can taxi companies justify such steep fares? I went to the Air and Space museum at Dulles today for a trip total of 46 dollars!

That is 12 dollars in bus fees, 31 dollars in taxi charges and three dollars in ATM charges. The bus cost six dollars each way which is reasonable for the distance, time and use of toll roads. The ATM charge is even fair. But 31 dollars in taxi fares, for about 10 miles round trip.

 That would make it three dollars and ten cents per mile! Now lets say that a typical taxi will hold 10 gallons of gas. Lets say a typical taxi (car) will get at least 20 miles per gallon. For a ten mile trip the taxi will burn half a gallon. Lets say gas prices are three dollars (which is a high estimate). Ok, three dollars for a gallon would mean $1.50 for half a gallon. Keep in mind that this 10 mile trip is round-trip. That means the gas for the entire trip would cost a $1.50.

Lets take 31 dollars now and subtract two dollars for gas. That leaves a profit of 29 dollars! So subtract another 10 dollars for maintenance, just to be generous. That leaves 19 dollars for profit. The trip averages 15 minutes. So $19 times 15 is a total of $285 per hour if the car were in service one after the other. Yet they aren't paid that much. Where is all of that money going?

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