When stepping into a taxi, you’re often given two options: pay a flat rate or go with a metered fare. But which option actually saves you money? The answer depends on several factors—your destination, the time of day, traffic conditions, and even the city you’re in.
This post breaks down the pros and cons of each fare type, how to make the right decision, and how to layer in savings with platforms like Fluz when using services such as Uber or Lyft.
What is a flat fare?
A flat fare is a fixed price that covers a specific route or distance. You’ll know the total cost before the trip starts—no surprises, no meter running. Flat fares are often used for airport transfers, hotel rides, or intercity trips.
What is a metered fare?
A metered fare is calculated based on distance traveled and time spent in the vehicle. The meter starts when the ride begins and ticks up with distance and traffic. Most city taxis and rideshare services like Uber and Lyft default to metered-style dynamic pricing, based on real-time conditions.
When flat fares save you money
Flat rates are often a better deal when:
- Traffic is heavy or unpredictable, such as rush hour or holiday weekends
- You’re unfamiliar with local pricing and want cost certainty
- Airport rides or cross-city trips have known distances and common price gouging risks
You avoid meter creep, which adds dollars with every minute stuck in traffic.
When metered fares work in your favor
Metered rides can save money when:
- Traffic is light, like late at night or early mornings
- Your destination is nearby, and the flat rate would overcharge you
- You’re in a city with competitive base fares, like Chicago or Philadelphia
Apps like TaxiFareFinder can help you estimate metered fares in advance to compare with any flat-rate offers.
Dynamic pricing in rideshare apps
Services like Uber and Lyft technically don’t use a meter, but their pricing fluctuates based on demand, distance, time, and driver availability. During surge pricing, a flat fare via a traditional taxi might actually be cheaper.
For example, Uber may charge a base fare plus per-minute and per-mile fees, but that total can spike significantly during high-demand periods. If you’re using Uber, check the fare estimate in the app before confirming—and compare it with a local taxi’s flat fare if available.
The hybrid model: upfront fares in rideshare apps
Both Uber and Lyft now offer upfront pricing before you book. This behaves like a flat fare and removes the uncertainty of traffic-based charges, though it can fluctuate due to demand. You can save on these fares by using Fluz to buy an Uber gift card with cashback or earn cashback with a Lyft gift card and apply it at checkout.
Which option should you choose?
There’s no one-size-fits-all answer. Use flat fares for longer trips with potential delays or unfamiliar territory. Go with metered fares for short, quick rides or during off-peak hours. And if you’re using Uber or Lyft, combine upfront pricing with cashback gift cards from Fluz to reduce your out-of-pocket cost.
Final thoughts
Flat and metered fares each have their place, and the smartest riders know how to choose between them based on context. Add in the ability to get rewards with a Lyft gift card or save money on Uber rides using Fluz, and your transportation decisions become even more cost-efficient—no matter which route you take.
