Yes. Starting in 2008 the drop rate is €2.70, or about $4.25. You can expect an “average” ride, from the Vatican to the center of town, to run you €10 (16). There’s really no such thing as an under-€10 cab ride any more. Considering the same ride cost less than 10,000 lire, or 5 a decade ago, you get a sense of inflation.
The other issue that’s come time and again concerns radio taxi services. When your hotel calls for a cab (or you do), the drop occurs the second the driver takes the call — this true throughout Italy. A three-minute taxi (the infamous 3 minuti) means that in theory the cab that has been called for you — you received the sigala, or call sign, such as “Toro 30” — will reach your destination in three minutes. But these are estimates depending on traffic and the driver’s own evaluation of the situation. If his arrival takes 10 mintes, it’s your problem, and your bill.
This can lead to 3-minute cabs arriving with €5/6 on the meter, which is unacceptable (€5/6 is normal for 5 minutes and just fine for 8 minutes). If you’re in a hurry, your options are limited. But if a hotel made the call, you can question the rate to the hotel concierge. It may not help, but it might help avoid collusion.
Bottom line, you’re on your own. It’s is a buyer’s market, particularly on rainy days. Milan is more organized than Rome when it comes to cabs and cab practices, and many companies in Italy are reputable and fair. Unfortunately, for every 10 honest drivers (who were in fact caught in traffic, hence the inflated meter) there’s one who double-dips. The cheaters are waning, though, since the longer it takes with one customer, the longer before the next fare.