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How to Use Taxi in the USA: How Much It Costs and Which Services to Use

Read the article and find out why a yellow cab won’t come when you call, how much it costs to chat with a taxi driver, and how to save on taxi even in big cities.

What You Need to Know About Taxi in the USA

Yellow taxi cabs are an essential feature of the landscape in New York, Los Angeles, and other major US cities. It might seem simple to understand the American taxi system — it appears to be just a matter of hailing a cab, getting in, and paying your fare. However, it's not always that straightforward.

In the USA, taxis form a full part of the urban scenery; yellow cars blend perfectly into the panorama of New York skyscrapers and city parks. The service seems impeccable, and there’s something quite elegant about the way film heroines gracefully exit these cabs. It makes one eager to take a ride. To simplify this experience, we've put together a guide on American taxi services.

Yellow taxis on the streets of New York during rain

Understanding Taxi in the USA

In the U.S., a taxi and a car service are not the same thing. Let’s quickly and simply break down the key differences.

How Taxis Work

  • Yellow or light green cars (boro taxis) if they’re part of a municipal service; independent drivers with licenses don’t always use yellow-painted vehicles.
  • The fare is calculated using a meter.
  • Taxis can pick up passengers on the street, at airports, train stations, and major bus stops (except for boro taxis, which only operate in outer boroughs).
  • They usually don’t respond to phone or app-based ride requests.
  • Most drivers are immigrants — outside of city centers, they may not speak fluent English.

Car Service Basics

  • Operate through ride requests via mobile apps.
  • Can be used for rides or car rentals (car sharing).
  • In most areas, they’re not allowed to pick up passengers from the street.
  • Fares are typically known in advance.
  • There’s a good chance you’ll get your lost item back — the larger the company, the higher the odds.

If you’re outside of central New York — where taxis are everywhere — it’s usually better to use a car service app.

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What is a Boro-Taxi?

Boro Taxis are a special type of taxi service introduced in New York City to improve transportation access in neighborhoods outside of Manhattan. These cabs are painted green and are authorized to operate in the Bronx, Brooklyn, Queens, Staten Island, and Upper Manhattan. Their main goal is to provide better taxi availability in areas where traditional yellow cabs are less common.

Key Features of Boro Taxis:

  • Designated Service Areas
    Boro taxis are not allowed to pick up passengers from the street in Lower Manhattan (below 110th Street) or at airports.
  • Pre-Booking Option
    In addition to street pickups in permitted zones, boro taxis can be pre-booked via apps or dispatch services.
  • Modern Equipment
    Like yellow cabs, they are equipped with meters and accept credit card payments.

These taxis have become an essential part of the city's transportation system, helping residents in outer boroughs access affordable and regulated transportation more easily.

Green Boro taxi on a New York street next to the Brooklyn Bridge

The Best Taxi Services in the USA

Not all services are equally beneficial or convenient. We've compiled a list of the top five most popular taxi services in the USA, discussing their pros and cons:

  1. 01.Uber
    The most popular and reliable service in America supports scheduled rides, boasts a large fleet, and offers affordable prices. Optionally, you can use UberPOOL, where you share rides with others, allowing for reduced fares ($5 for any distance). However, rates can significantly increase during mornings, evenings, and holidays due to high demand.
  2. 02.Lyft
    Direct competitor to Uber. Easily recognizable by the fluffy pink mustaches on their bumpers or hoods. Operates similarly but does not yet have as extensive a fleet, so getting a ride during peak hours might take longer. The company frequently offers promotions, providing discounts and bonuses to passengers. New app users receive a $15 credit for their first ride.
  3. 03.Via
    One of the cheapest 24-hour carpool services where the driver collects multiple passengers and drops them off at various points along a single route. It costs almost half as much as a regular taxi ride, making it an attractive option if you're okay with riding with strangers.
  4. 04.Gett
    Often criticized for drivers' late arrivals and poor geolocation, which doesn’t always track the car accurately. Driver cancellations are frequent. However, they offer a fixed price for rides—just $10 for trips up to half an hour and within 4 miles. Best to call a car in advance when you're not in a rush.
  5. 05.Arro
    Mostly employs drivers of yellow taxis. This budget service has a low level of amenities (no phone chargers, water, etc.), but offers competitive pricing with fixed rates depending on the area and duration. If your journey is under 15 minutes, this is an ideal option.
Uber mobile app with a yellow taxi sign in the background

Using Taxi in America

  • Via mobile apps
    In most U.S. cities, the easiest and most convenient way to get a ride is through mobile apps. Services like Uber and Lyft let you book a ride in just a few taps. These apps also allow you to estimate the fare in advance — so no surprise charges.
  • Hailing a taxi on the street
    This method is most common in large cities like New York. Simply raise your hand and flag down a yellow cab. However, if you're in a less populated area, this approach may not be reliable.

Taxi Fares in the USA

The cost of a taxi ride depends on the city, distance, and time of day. On average, base fares start at $2–3, with an additional charge of around $2 per mile.

In New York, a typical yellow cab ride within the city costs around $10 to $20. In cities like Los Angeles or San Francisco, fares may be slightly lower. Keep in mind that prices can spike during peak hours or holiday periods.

How to Save on Taxi Rides

  1. 01. Use the apps
    Apps like Uber and Lyft often offer discounts and promo codes — keep an eye out for deals.
  2. 02. Plan ahead
    Rates can surge during peak hours. If your trip isn't urgent, try scheduling it during off-peak times.
  3. 03. Share your ride
    Most apps offer a “share ride” feature, allowing you to split the cost with other passengers — a great way to save money.
Uber and Lyft logos on a city sign

Tips for Tourists

If you're traveling in the USA for the first time, it’s important to know a few taxi-related rules and tips:

  • Airport taxis
    Taxi fares to and from U.S. airports are often higher due to additional fees. Major airports like JFK (New York) and LAX (Los Angeles) have designated pickup zones for Uber and Lyft rides.
  • Rate your driver
    After each ride on Uber or Lyft, you can leave a rating for your driver. This helps improve service quality overall.
  • Stay safe
    Make sure to use only licensed taxi services. Large U.S. cities have strict taxi regulations, and licensed vehicles undergo regular inspections. Always check the license plate and vehicle make before entering a car you’ve ordered through an app.
  • Don’t forget to tip
    It’s customary to leave a tip for your taxi driver. The standard amount is 10–15% of the fare.

Tipping in Taxis

Tipping your taxi driver is an unwritten rule in the U.S. — and sometimes it’s added automatically if you pay by card. For short rides, it’s common to round up the fare or add $1–2. If the ride lasts more than 10 minutes, a 10–15% tip is expected.

Additional services can affect the tip amount: if your driver shares helpful local tips (like where to catch a cab next time or which hotels are worth staying at), a larger tip of 20–25% may be expected.

Even if these tipping amounts seem high, keep in mind that taxi driving is considered one of the most dangerous jobs in the U.S.. Statistically, their risk of harm is nearly twice as high as that of police officers. So it’s best not to view tips or pricing as unreasonable — they often reflect real challenges of the profession.

Yellow taxis in front of glass buildings in New York City

Whether you choose to travel by taxi, personal car, bicycle, or bus, the main thing is that it happens in America. Nowhere else can you experience such enjoyment from the roads, travel, and interaction with the urban environment. American Butler is ready to provide all the necessary assistance — from consultations to creating personalized tours with a custom selection of activities and entertainment.

Reach out to us through the chat window or by email.

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