By Madison Lucchesi

The Winthrop Town Council approved a $2 increase for Winthrop Taxi’s in-town base fare while questioning whether the town has reached the point where it should stop exercising such control.

The council voted 6-3 last week to boost the in-town charge from $8 to $10 after the owner of Winthrop Taxi, Shawn Cluen, called the increase necessary for his company to stay in business. Ahead of that vote, the council voted 6-3 against approving a $1 increase.

Council members, in their consideration of the fare increase, heard from citizens who described the trust they place in the taxi company, and they struggled with the question of how and whether the council should price that value.

State permission

State law grants towns the right to set such fares if they want. Winthrop’s Town Council president, Jim Letterie, said after the session that such actions by the town may have made sense in the past, when the online car ride services Uber and Lyft didn’t yet exist, and other taxi services sometimes engaged in questionable practices.

But government price-setting doesn’t make obvious sense now, especially since town officials don’t have access to financial data on Winthrop Taxi that would let it make an informed decision about proper fare rates.

“The council should not be, at this point, in the taxi business,” Mr Letterie said. “For us to make any financial decisions on a company, that we have no information on, makes zero sense.”

The council’s vice president, Suzanne Swope, offered a similar take during the council session. “I’m not sure, given the environment now, that we should be deciding the fares of a local taxi,” she said.

Compromise sought

Mr Letterie and council members Patrick Costigan and Joseph Romano voted against the $10 fare. Mr Romano proposed the $9 level, and only Mr Letterie and Council member Kurt Millar joined him in backing that idea.

Mr Letterie also drives for the online car ride services and said he saw no need to recuse himself from the council’s consideration of the matter because he drives infrequently and derives little income from it.

Mr Cluen told the council that his taxi company in Winthrop makes so little money that his work in Revere subsidizes it, and he warned that he might close the Winthrop business without a fare increase.

Winthrop Taxi has lost three drivers recently, Mr Cluen told the Town Council. The company has been coping with a rising cost of fuel, and gains in inflation more generally, plus a 29 percent increase in private car insurance, he said. The company also is in the process of buying new cars, and replaced 122 tires in the past year, he said.

Ridership drops

Given those conditions, keeping Winthrop Taxi open and maintaining current drivers will be “an uphill battle and it’s only going to get harder,” Mr Cluen said. “The increase is essential to stay in business in town,” he said.

The last in-town fare increase was a $1 gain in 2024. That $1 gain “was very disheartening to the staff,” especially since the drivers pay for their own gas, Mr Cluen said.

Winthrop Taxi also provides trips out of town, such as runs to Logan airport that cost about $30 each way.

Uber and Lyft have caused the company’s overall ridership to drop significantly, Mr Cluen said. A Winthrop Taxi driver typically had about 10 customers a day, about a third of the level in 2014, he said.

Other options

The town also has no taxi stands, and Winthrop Taxi is seeking space for that in front of its office at 65 Revere Street, Mr Cluen said.

Taxi industry leaders in the state created the Massachusetts Regional Taxi Advisory Group in 2014 to help protect themselves from competition from Uber and Lyft. The city of Boston formed a similar group at the same time. Both groups stopped meeting in 2015.

Other transportation options in Winthrop include the two MBTA bus routes that runs on schedules with about a half-hour between trips during peak times; the MBTA’s Ride service for people with temporary or permanent disabilities who are unable to take traditional public transit; and the Winthrop Council on Aging’s weekday van service, which offers free local rides.

Losing Winthrop Taxi “would be incredibly devastating to the town,” Winthrop resident John Morgan told the Town Council. Mr Morgan, who is blind, opposed the fare hike, telling the council the increase would hurt senior citizens and reduce driver tips. Cluen confirmed that seniors prefer the personalized service of Winthrop Taxi as many do not use smart phones, which is required to use a rideshare service, and they prefer to travel with a driver they know.

Senior concerns

The town council hopes to look into implementing a senior discount for taxi rides in the future, assuming the discount would not be detrimental to Winthrop Taxi’s business. One resident at the council suggested the town subsidize fares for seniors and others on a fixed income.

Winthrop Taxi fare prices:
To Logan Airport: $28
From Logan Airport: $33.50
To Seaport: $38 plus the toll
To Orient Heights or Beachmont: $10
To Stop & Shop (Suffolk Downs): $14
To Massachusetts General Hospital: $35 plus toll