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Rideshare apps like Uber and Lyft have transformed how we get around cities, offering on-demand convenience and transparent pricing. But that doesn’t mean taxis are always the more expensive option. In fact, depending on timing, distance, and location, hailing a cab can actually be the better deal.

Here’s when choosing a traditional taxi might save you more than tapping a rideshare app.

  1. During Surge Pricing or Peak Demand

One of the biggest cost factors for rideshare services is dynamic pricing. During high-demand periods—rush hour, holidays, or bad weather—Uber and Lyft increase fares significantly. In contrast, most taxis operate under regulated fare structures, which means your rate doesn’t spike because of demand.

To check for surge pricing, open the rideshare app and look for fare multipliers or higher-than-usual estimates. If you’re seeing a 1.8x or 2x surge, a traditional taxi might be the smarter call. Use TaxiFareFinder to estimate the taxi fare for your route and compare in real time.

  1. In Cities with Flat-Rate Airport Taxi Fares

Airports are a prime example where taxis can outperform rideshares in price. Many cities offer flat-rate taxi fares from airports to downtown areas. For example, New York City offers a flat fare from JFK to Manhattan, which is often cheaper than what Uber or Lyft charge during peak arrival times.

Before booking a ride, check your city’s airport taxi policy—these rates are often posted on the airport’s official website or ground transportation section.

  1. For Short Rides with Minimum Ride Fees

Rideshare services sometimes impose a minimum fare—often $6 to $9—which can make short-distance trips more expensive than necessary. If you’re only going a few blocks, a metered taxi may charge less than the base rate imposed by an app.

In many downtown zones, especially near transit hubs or shopping districts, taxis can be the most cost-effective solution for short trips.

  1. When Taxis Accept Digital Payments or Rewards

Traditionally, taxis were cash-only. But many drivers now accept digital payments like Apple Pay or Google Pay, and some partner with booking platforms like Curb or Flywheel. If you’re paying with a digital gift card, you can also earn cashback with a Lyft gift card or get rewards with an Uber gift card through Fluz for your app-based ride, giving you flexibility based on who offers the better deal.

In cities where traditional taxis support these platforms, you may still be able to earn rewards—even outside a rideshare app.

  1. When Availability is an Issue

If you’re trying to book a ride in a crowded area—like after a concert, during a parade, or in bad weather—rideshare apps might not have any drivers nearby or wait times may exceed 20 minutes. In those situations, a curbside taxi can get you moving faster and often for less, especially if rideshare prices are surging.

  1. To Avoid App-Related Fees

Rideshare apps often add service fees, booking fees, airport pickup fees, and more. While taxis can have similar add-ons, they’re usually regulated and disclosed upfront. If you’re noticing a lot of small line items in your rideshare receipt, the final fare may be significantly higher than expected.

Conclusion

Rideshare apps aren’t always the cheapest way to get around. Taxis offer consistency, regulated fares, and, in many cases, a faster and more affordable option during peak times or short-distance trips. Whether you’re using a digital gift card to get rewards with an Uber gift card or simply hopping in the nearest cab, knowing when taxis offer the better value can help you save money and time.