Why cab charges vary?

Why cab charges vary

Many people get confused while traveling by cab service. Even for the same distance, why cab charges vary in different cities and places? And this question makes everyone confusing. Don’t worry! after reading this post, your view of watching cab services will get change. In this post, you will find different factors that affect charges.

Fuel Prices

In the cab services, most of the people prefer diesel car for providing service. An increase in fuel price directly affects the charges. Long-distance journey charges get affected by hundreds to thousands. For short distances, it affects less as compared to long distances. In our country, fuel prices are different in each state, even in cities.

Maintenance Cost

As vehicles are machines they also need maintenance, actually more. This maintenance completely depends on how many vehicles covered the distance, conditions of the road, and environmental conditions. This cost indirectly gets added into the charges, you can say it is a hidden cost.

Taxes and charges

In each commercial field tax is the factor which affects price directly. For cab service, many taxes get added like road tax, tourist tax, parking, and toll. These taxes or charges get added to the packages. In some hill stations, local village development charges are also getting added into the packages. Many cab services purchase cars by loan, this adds too much burden on the driver or owner to pay monthly installments.

Customer frequency

This factor depends on the type of place. In the case of the hill stations, business is season-dependent. More customers fewer charges – In metropolitan cities customer frequency is too high, therefore the charges are less. In tourist places, customer frequency is seasonal therefore service provider has to cover all the yearly targets, if he/she will not cover this target, then it will tend to high debt, as yearly maintenance charges and taxes are unavoidable. Sometimes service provider adds returning charges also, in many rural places they never get a customer for the return journey but distance gets doubled therefore they add returning charges. This factor perfectly answers the question of why cab charges vary.

Number of seats

The number of seats decides the cost per person. In pickup and drop business, cost per person is the main thing. If the cab has a good number of seats, then the price gets lowered and vice versa. This formula is also applicable in long-distance journeys. If you will see an example of buses, the number of seats are too high therefore the charges are too less, but for small cars charges are high for the same distance.

Car type

This factor directly affects the budget. It is always customer choice to choose a car. High-end cars charge more, low-end cars charges low. Car prices start with a few lakhs. No one even thinks about this factor. This is also a hidden cost that many people add. When you buy something in business, you have to consider the complete recovery time. If you will see this factor, recovery this time is in few years.


These are some most important factors which decide the charges in each cab service. Every human deserves respect and drivers are also human. Lonavalcab is a cab service in Lonavala which highly focuses on better customer experience.

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