How are cab fares calculated?

Taxi meters that add a pre-set monetary amount to the fare every time a certain distance and/or time parameter is reached automatically calculate cab fares. It starts with the flag fare, sometimes called a flag fee, which is a set amount charged when a customer enters the cab.

Taxi meters use electrical pulses to calculate distance and time. As a example, a taxi meter may add money every time the cab travels 100 yards. It pulses at every yard, but adds the fee at the 100th pulse. Taxi meters also charge for time waiting in traffic. In this case, the meter counts off in seconds. Time and distance charges are sometimes combined. The taxi company determines the amount charged per interval.