NBC 5 Responds

Undercover investigation reveals Chicago cab drivers overcharging riders

Data from the city of Chicago shows many taxi drivers are bending the rules and overcharging passengers. So NBC 5 Responds investigator PJ Randhawa went undercover to see just how often it happens — and what riders need to watch out for.

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Chicago taxi drivers bending the rules and overcharging riders? An NBC 5 Responds undercover investigation revealed it’s happening more than you might think — and it’s a bad look for the city.

Chicago taxi drivers bending the rules and overcharging riders? An NBC 5 Responds undercover investigation revealed it's happening more than you might think -- and it's a bad look for the city.

"I feel really, really bad for people that are like, 'Oh, this must be the way it is in the city, right?' Well, no, you're being ripped off," said Erick Lay, a Chicago native who now lives in Florida

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On two recent visits to Chicago, Lay said taxi drivers gave him a ride he won't forget, and not in a good way.

"We started to move, and I noticed the meter wasn't on. And I said, 'The meter needs to be turned on.' He's like, 'Oh, it's $15. And I was like, 'No, the meter needs to be turned on,'" said Lay.

Lay said it didn't just happen once. Multiple drivers tried to charge inflated flat fees during short trips between popular downtown hot spots.

"[Another driver] quoted me $20, and the actual fare was $11.50," said Lay.

In some cases, he said cab drivers wouldn't take him on shorter trips at all, simply refusing the fare.

"It happened half a dozen times," said Lay.

Several NBC Chicago employees have reported the same experience.

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It's illegal for Chicago cab drivers to demand flat rates higher than the metered rate or "refuse any person transportation," but a NBC 5 Responds investigation revealed they do both -- a lot.

"[Drivers] may be potentially kind of … singling out tourists or people who may not know better, as opposed to local residents," said Lay.

Look at this typical week in the lives of some taxi passengers in Chicago who submitted complaints to the city:

"Driver was at the Navy Pier taxi stand and we got in his cab and he asked where we were going. We gave him our cross streets of Chicago and Superior, and he said it would be $75 and it was a flat fare. ... He then threatened [us]."

"Driver would not put on meter … [and[ when questioned he yelled at [the passenger], then was speeding down the block and made the passenger pay $35."

"Wanted to charge a flat fee of $25, and it is only $9."

"Driver pulled over to pick us up. He then tried to demand a cash payment for our ride upfront. We asked him to turn on the meter as he's supposed to, and he refused. Asked for $45 for a ride to Lakeview, which is more than double the correct fare. This has been happening more and more in the Loop, especially later at night. It's a terrible look for a city as they are aiming for tourists who may not know the rules."

This is just a sampling of reports to the City of Chicago's Department of Business and Consumer Protection, from people who try to take a Chicago cab, but are told they must pay an inflated flat rate – not the price on the taxi's meter.

NBC 5 Responds has found that more people complain about demands for flat rates and overcharges than any other issue involving taxis in Chicago.

A public records request turned up six months of taxi complaints from the last half of 2024: 1,880 complaints in total, averaging about 10 a day, for things like reckless driving or rude drivers. But over 40% of those complaints were about fare issues.

NBC 5 RESPONDS GOES UNDERCOVER

So, NBC 5 Responds hit the streets, visiting Chicago hotspots to see for ourselves: Would cab drivers play by the rules, try to cut a side deal or just refuse the ride altogether?

Immediately the first taxi we hailed said they couldn’t take us.

"You have no cash?" asked the driver. We told the driver we didn't have cash and would be paying with card.

"I'm sorry, my meter is broken," said the driver.

Operating a taxi with a broken meter is also illegal.

And just one ride later? We were on our way to the Bean from the Adler Planetarium when we noticed the taxi meter wasn't turned on.

"It's flat rate," said the driver.

We asked if that was allowed.

"Yes it's much better for … I can turn on the meter, it's no problem. I turn it on," said the driver.

We asked him what his flat rate would've been.

"It depends. It can be $10, $11," said the driver.

Once the meter was turned on, that ride turned out to be just $8.

In total, out of the six rides we took, only two tried to charge us a flat fee.

Afterwards, we even caught up with one of the drivers who wanted us to pay in cash. Apparently he'd had a turn of good luck. His meter was suddenly fixed.

With Uber and Lyft flooding the market, it's tough to make a living. Several taxi drivers told us they don't charge flat fees but that if they could, it might even the playing field.

"It should be allowed, because Uber has destroyed everything. It's very tough. We have kids to raise. We have payment to make for the cars," one driver told us.

Yet others didn't seem to realize charging a flat rate that's higher than the metered fare was illegal at all.

"You have to [have] a negotiation between the passenger and the driver," said another driver when we asked them about flat fees.

We told them it was illegal to charge a flat fee higher than the metered rate and that there was a placard in the back of every registered Chicago taxi cab that stated that.

"I'm not able to see, but I'm not … I'm sure I'm correct. I've been driving for some time, so I know what I'm saying," said the driver.

"I shouldn't have to tell you to turn the meter on in your own cab," said Lay.

The city of Chicago told NBC 5 Responds that starting this year, the new minimum fine for drivers who are found guilty of charging flat fees has gone from $50 to $300, and drivers found liable must also refund the entire fare.

But city data shows only about 12 percent of complaints about flat fares result in any action. The city didn't tell us why that number is so low.

If you are charged a flat rate or refused a ride, you can report it to 311 if you have the cab number.

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