page_title: Taxicabs of the United States
section_title: Chicago
hierarchical_section_title: Taxicabs of the United States / Chicago
context_page_description: The taxicabs of the United States make up a mature system; most U.S. cities have a licensing scheme which restricts the number of taxicabs allowed. As of 2012, in the United States: the total number of taxi cab drivers is 233,900; the average annual salary of a taxi cab driver is $22,820; the expected percent job increase over the next 10 years is 16%.
  Some cities use "taxi medallions" as permits for taxicab drivers to pick up passengers. Because the medallion system is a government-created intentional constraint on the supply of taxicabs, and historically cities have increased the number of medallions much more slowly than the growth in demand for taxis, medallions have generally been considered a great investment; The increase in vehicle for hire services has eroded the value of medallions.
  Taxicab companies may be independently owned small businesses with only one taxicab and driver or have fleets of 100 or more taxicabs. Drivers are rarely employees of the company, and usually lease the taxicab on a per-shift basis. Cabs can also be owned by separately-incorporated small businesses that subscribe to a dispatch service.
context_section_description: Taxicabs in Chicago, Illinois, are operated by private companies and licensed by the city. There are about seven thousand licensed cabs operating within the city limits. Licenses are obtained through the purchase or lease of a taxi medallion which is then affixed to the top right hood of the car.
  Each medallion carries a numeric code, which is also displayed prominently at several locations on (and in) the taxicab. The medallion must be purchased from the city or from another medallion owner. The supply of medallions is strictly controlled to prevent a surplus of cabs, which means that medallions trade at a high price. Unlike other cities, Chicago taxis can be of any color and drivers are not required to wear uniforms.
  Flagging a taxi down is fairly easy throughout most city neighborhoods, but can often be more difficult in areas where there is low demand for cabs. Drivers are required to pick up the first or closest passenger they see, and may not refuse a fare anywhere within the city.
  The passenger is required to pay the amount on the taximeter plus any additional tolls or fees. The initial entry, sometimes called a "meter drop" or "flag pull", is $3.25 regardless of distance traveled. Each additional fraction of a mile charge is $.20 for each additional 1/9 of a mile. Additionally, each 36 seconds of time elapsed, known as "wait time", is $.20. This charge is in place to ensure the driver still makes money if the cab is stuck in bad traffic. There is a flat fee of $1.00 for the first additional passenger and another $.50 for each additional passenger after that unless the passenger is under 12 or over 65 years of age.
  An additional charge of $4.00 is added to the total fare on each trip from O'Hare or Midway airports under the State of Illinois Metropolitan Pier and Exposition Authority (MPEA) Airport Departure Ordinance. The tax should appear on the meter as an "extra" charge. There is a $0.50 additional charge for credit card use, and tipping is optional but encouraged at the rate of 10% of the total taximeter fare.
  City of Chicago taxicabs must accept credit cards, unless the taxicab is independently owned and operated – that is, the cab does not belong to an affiliation.  One can tell that a cab belongs to an affiliation from the logo on the outside door of the cab.  Another way to tell if the taxicab that one is riding in is an independently owned taxicab – and therefore not subject to the requirement to accept credit cards – is whether the taxicab has a "partition" between the passenger compartment and the driver.  Partitions are mandated for all taxicabs, except independently owned and operated taxicabs.
  The enforcement of, and compliance with, the partition rule has an inconsistent history in Chicago.  A partition is no longer required, however, if a cab has a closed-circuit television.
  Partition 'use requirements' have resulted in partition-impact injuries and deaths in collisions, just as in other cities like New York and Boston.
  Below are some estimated cab fares from State and Madison, the downtown zero point.
  State and Madison to O'Hare Airport: $38 – $45.
  State and Madison to Midway Airport: $27 – $32.
  State and Madison to the United Center: $10– $12.
  A study conducted in April 2011 by the Chicago Dispatcher revealed that Chicago has one of the lowest standard cab fare rates in country, despite higher gas prices in the city. Cabs in Chicago charge an estimated $12.72 for a distance of five miles and five minutes wait time, lower than an estimated $14.10 in New York and $18.48 in Los Angeles.
  Rates from Chicago, excluding O'Hare and Midway Airports, are straight meter to the city limits plus meter and one-half from the city limits to the destination.
  Straight meter fares apply to all trips departing from Midway or O'Hare airports to the following suburbs. (All other trips are metered at one and one half the rate from Chicago's city limits to the suburbs.)
caption: A Chicago, Illinois taxicab in July 2005.
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