The base taxi fare in Seoul will rise by 1,000 won (69 cents) to 4,800 won, starting in February. Whether the increase will solve the ongoing shortage of after-dark taxis, however, remains uncertain.
The Seoul city government on Tuesday passed the plan to increase the base rate for midsize taxis operating in Seoul from the current 3,800 won. The raise would be the first since February 2019.
Under the new scheme, the distance that taxis travel with the basic fare, will also decrease to 1.6 kilometers from the current 2 kilometers.
In December, the base fare for late-night taxis will increase as well. The basic fare between 11 p.m. and 2 a.m. will increase by 40 percent, from the current 4,600 won to 5,300 won. This will go up to 6,700 won in February next year.
During the remainder of the late-night shift that ends 4 a.m., fares will increase by 20 percent compared to normal operating hours.
The fares for calling and reserving a late-night cab will also be raised to some 5,000 won starting this week. Currently, certain taxis from franchised platform operators, such as Kakao, charge 3,000-4,000 won per ride.
With the price hikes, the city government aims to attract taxi drivers, many of whom had quit or switched jobs during the pandemic, to return. Increasing taxi demand toward the year-end holiday season is expected to spur taxi drivers to come back, according to the city government.
But whether the city government’s plan is enough to convince taxi drivers to return remains uncertain. Some worried that it would only make the public bear the burden of the extra costs.
A shrinking taxi demand during the pandemic drove taxi drivers to take up better-paying jobs, like delivery services, which saw an unprecedented boom.
The shortage of taxi drivers has caused a taxi shortfall at night in the greater Seoul area, even after the government lifted major social distancing rules earlier this year.
The Seoul city government and the Transport Ministry have failed to solve the taxi shortage via several measures. The taxi fare hike was decided on as a last resort.
