Gas Prices Hurt Local Taxi Businesses

Soaring gas prices continue to drive prices up for other items and services.

Drivers contracted by Valley Cab in Medford say they followed after other taxi companies by raising prices at least $0.10 a mile.

They say that's not a major increase, especially when many of their fares are only two or three miles, but say it's necessary when they're spending about $55.00 a day just on gas.

Drivers say many people are paying the same total amount for a ride and are just leaving a smaller tip to make up the difference.

"It's slowing our business down.  We're not getting the amount of rides that we were getting before the gas hike because people are spending more money everywhere else," says taxi driver Alan Mandel who owns and operates a cab for Valley Cab.

According to AAA, Oregon has the fifth highest prices in the nation at an average of $3.43 a gallon.

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