Taxi Mafia

[DjDiverDan]

Is there a rate you would think wasn't fair? Like 8 to 1 or 5 to 1? .

Chief, the whole problem with asking what is "fair" or "reasonable" or even "morally justified" is that all of those terms are purely subjective. We are talking prices here - after all, currency exchange rates are simply the price one is willing to pay in one currency for a given quantity of another currency. Is it "fair" that the local 7-Eleven will charge me $4.49 for the very same gallon of 2% Milk that I can get at the local Neighborhood Walmart for $2.29? It's not "fair" if I was going to the Walmart to shop anyway, but it just might be fair if I was really in a rush, was out of Milk for the kids' breakfast cereal, and it was worth $2.20 to me to avoid driving out of my way and spending extra time in the Walmart. Prices are not set by what is "fair", and they SHOULDN'T be. Prices ought to be set based on supply and demand. And yes, the whole fixed rate structure of taxi rides on Cozumel is no exception - I'd be just fine with a completely free market on taxi fares, where I could bargain for a better rate than the fixed rate set by the City (with substantial input from the taxi drivers, but no input from tourists!), as long as there were no barriers to entry, so that the local guy with the car and a few hours of spare time could compete with the cabs by offering transportation at lower prices. But back to your question - what if the taxi drivers offered an exchange rate of 8-1 or 5-1? I suspect that those prices would strongly signal to all tourists that it was much better to get Pesos to pay for taxi rides. I used to pay for taxis in dollars all the time in my early years in Cozumel, when taxi rides from Ernesto's on the waterfront to Centro were $3.00 and the 10-1 exchange rate was much closer to, sometimes even a bit better than, the rate I could get at other locations. So what made me change my practice? PRICES - when taxi rides went up in price and the 10-1 exchange rate became more and more out of line with reality, I had more and more incentive to buy and use Pesos. That's the whole purpose of prices - to signal people about the optimal economic behavior. No price is "unfair" if people have a choice whether or not to pay it.

The next time you are thinking of using the term "fair" in an argument, remember that "fair" is just an event the County throws every summer for local farmers to show livestock. Any other use of the term (by politicians, for example) has no more value than what the livestock leaves on the ground at the end of the County Fair.

 

[Christi]

OK - yes, many can live here for that, but that really wasn't my point. Many of you are assuming that all locals are trying to evade the law and are doing everything and living on a cash only basis without using a bank at all. I guess many of you would be surprised at how many actually do have bank accounts and live their lives above board. You'd also be surprised at how many things MUST be paid through the banks here - and again, any money deposited into a bank account here, business or personal is reported to the MX Treasury (Hacienda/SAT). Locals must have bank accounts if they want to obtain credit to buy things they otherwise cannot afford (cars, motos, TV, appliances, general loans, etc.) And yes, after a certain amount, cash exchanged is also reported and tracked - whether you've seen it or not. ANd if they want the best rate, they go to the bank to exchange their money where the rate is 3 to 4 points higher than the change houses.

Look, you all are shooting the messenger. I am just trying to share the way things really work here away from the tourist view and trying to put some things in perspective. Whether some people like it or not, this is THEIR country and THEIR piece of paradise and we are all just guests - even me and all of the other ex-pats who haven't gotten their citizenship yet. I have permanent residency and my nationalization is in process - but I am still a guest of this country. I have the choice to leave if I can't handle it. Trust me, I don't like A LOT of the red tape and "backwards" ways certain things are done here, it's HARD to live here sometimes - but if I want to live and operate a business here, I have to deal with it. Trust me, those of you who are up in arms about the taxi practices would never make it living here full time - that's NOTHING - haha! Your blood pressure would be through the roof all the time if you knew some of the stuff we have to go through! BUT, it's a choice. You're all here on vacation for a week or two (more if you're lucky) a year - relax - go with the flow, make informed choices - but don't get upset and stress over things you can't control and that really aren't a big deal in the grand scheme of things. No, you shouldn't get ripped off, but if you are informed, you wont!

My points are all addressing the way things are done legally and the way they are supposed to be done. OF COURSE there are those who don't do things legally - but let's give them the benefit of the doubt and assume that they do. And I KNOW that there are plenty of taxi drivers that will try to get another buck or two or three - I am not saying that it's ok, in fact - I avoid taxi's at all costs unless totally necessary - BUT - again, if you're reading this thread, or any of the other threads on this topic - you know that they use an exchange of 10:1 - they are not banks and they are not even obligated to accept dollars, although they will if they are smart (for tourism purposes). Do you think that a US taxi driver will accept pesos? Not likely! I've armed this forum and my BXTS facebook page with the official taxi rates, the official airport shuttle rates, the zones, and the fact that they use a poor exchange rate. So if you don't want to bother, or don't have time to get pesos - you are going in knowing what it will cost you in dollars or pesos to take a cab - if you don't agree with it, then you are welcome to boycott the taxis and rent a car, walk, rent a bike or God forbid rent a moped.

Keep in mind that the locals (DM's, Captians, taxi drivers, waiters, waitresses, bartenders, etc. etc.) are usually going to change the money right away because a good percentage of the population here live hand to mouth so they don't have the luxury of saving it until the exchange rate gets better. Those who have kids, of course have bigger expenses. School is not free, not even public school - in fact, it's very expensive by the time they pay the tuition, buy supplies, buy uniforms and books - they are looking at $300 to $400usd per child per semester - not including other school expenses that come up during the school year.

Also, for the record, in order to be granted a VISA to live here without working, one must prove $2500 USD per month income from outside sources (ie: not from working in Mexico) for the first person, for each additional person I believe it's an extra $500usd a month required. This used to be $1500/month - but I have another news flash - we have inflation here as well! It keeps getting more and more expensive to live and operate a business here.

People want to play semantics with this thread and split hairs, fine if you have time and want to do that - but I'm going diving

Have a wonderful weekend!

 

[ggunn]

FWIW, the 10:1 taxi exchange rate is not universal. When I was on Cozumel in May, I had several taxi drivers give me a price in dollars and pesos where the ratio was about 12:1. Sixty pesos or $5 US.

 

[blue steal]

FWIW, the 10:1 taxi exchange rate is not universal. When I was on Cozumel in May, I had several taxi drivers give me a price in dollars and pesos where the ratio was about 12:1. Sixty pesos or $5 US.

This has happened to me a few times at Mega or Chedrui. I ask the taxi how much to BA, they say $5. I ask in pesos, 60P. So in these cases I just use dollars.

 

[Basscat]

Is there a rate you would think wasn't fair? Like 8 to 1 or 5 to 1?

Of course a taxi is only a little cost. So maybe it doesn't matter.

What if it was diving?

I think 10/1 is OK because we are talking small amounts and convenient to figure. Talking taxis here, not diving. I do expect my dive op to have the resources available to find and calculate the current exchange when I pay for the cost of diving, that is a very different situation.

 

[mstevens]

It's a worn out and boring argument that anyone who disagrees with anything negative said about Cozumel has real estate there, or has a business connection there, or is attempting to censor the board.

A few of us have real estate and business connections there and nevertheless say things that could be construed as negative. Cozumel is a real place. Real places have problems.

Edit: in reading my response, it sounds as if I'm disagreeing with ggunn. I'm trying to support his point that not all posts that aren't completely rosy are anti-Cozumel.

 

[ggunn]

I think 10/1 is OK because we are talking small amounts and convenient to figure. Talking taxis here, not diving. I do expect my dive op to have the resources available to find and calculate the current exchange when I pay for the cost of diving, that is a very different situation.

Exactamundo. A frequent retort to my postings about not sweating the small stuff is the postulation that if I am not concerned about being "cheated" out of a dollar by a cabbie then I shouldn't be concerned if my hotel or dive op gets to me for hundreds of dollars since it is the same thing. This is just silly; matters of degree DO make a difference.

 

[cvchief]

Not bothering to copy your rant Chief but honestly you ( and others) make it so complicated! If you have a problem with ANY exchange rate just pay in pesos. Simple. Taxi drivers (and others) exchange USD at 10:1 like it or not. You can deal with the rate, pay in pesos or WALK. Simple.
The other solution to the taxi driver frenzy created in this thread is to rent a car. It's our preferred way to get around. Someone start a thread about that! I am positive there will be page after page of OMG car rental stories, bribes, extortion and jail! Happy to live in my world..

Hehe. Did I sound that ranty? I was just thinking out loud, errr... thinking on the screen.

Well, I almost always pay in pesos. And I always have a car. Always. I am not excited, my dander aint up, I am not breaking a sweat or raising my BP. Just chatting.

I would have to say Gun seems to have a very practical position of not worrying about being taken advantage of on the small scale. I can accept that. It acknowledges the problem while judging it is not worth discussing. I have to say my issues (and I have a lot) was simply that lots of people say 10 to 1 is justified or common. I disagree with that. In fact, now we hear even ALL TAXIS don't use the 10 to 1 to maximize their profit. I have been to restaurants the used an exchange rate that made it BETTER to pay in dollars than the rate I got the pesos for at Santander. To try to imply 10 to 1 is common is bull putukey in my mind and insulting to the MANY businesses that use a legitimate, reasonable rate. To defend it, saying, 'Oh my, it is too hard to figure the dollars correctly in a taxi" is weak too. The taxis take in dollars ALL DAY LONG. You think they would have difficulty memorizing 12 to 1? Remember the fares are set amounts; it isn't converting a meter.

Besides this is an internet board, I ain't up in arms. I am just chatting and defending Cozumel as a better place than one that NEEDS to shave tourists for 28% on dollar. I think we can discuss that rationally. Christi did you really just say don't worry about taxis because if we lived there we would never survive because there are so many worse things wrong? That seems a back handed defense of the island.

Also I know alot of people who live there and discuss how to get a fair price out of a taxi. They seem to have issues with it too. Heck, Christi posted the taxi rates to help people fight the taxi battle. Kudos. But we can't talk about it? And yes, clearly I am bored at the moment and have time to engage in the discussion, thanks for noticing. I would rather be diving with you Christi, but, alas, all I can do is post about taxis. It is like the weather; Everyone talks about it, but what can you DO about it?

---------- Post added July 13th, 2013 at 04:45 PM ----------

And for the record, I would be happy getting on a food thread and discussing that but taxis are the only thing going on now.

 

[judydivescoz]

Hehe. Did I sound that ranty? I was just thinking out loud, errr... thinking on the screen.

Well, I almost always pay in pesos. And I always have a car. Always. I am not excited, my dander aint up, I am not breaking a sweat or raising my BP. Just chatting.

I would have to say Gun seems to have a very practical position of not worrying about being taken advantage of on the small scale. I can accept that. It acknowledges the problem while judging it is not worth discussing. I have to say my issues (and I have a lot) was simply that lots of people say 10 to 1 is justified or common. I disagree with that. In fact, now we hear even ALL TAXIS don't use the 10 to 1 to maximize their profit. I have been to restaurants the used an exchange rate that made it BETTER to pay in dollars than the rate I got the pesos for at Santander. To try to imply 10 to 1 is common is bull putukey in my mind and insulting to the MANY businesses that use a legitimate, reasonable rate. To defend it, saying, 'Oh my, it is too hard to figure the dollars correctly in a taxi" is weak too. The taxis take in dollars ALL DAY LONG. You think they would have difficulty memorizing 12 to 1? Remember the fares are set amounts; it isn't converting a meter.

Besides this is an internet board, I ain't up in arms. I am just chatting and defending Cozumel as a better place than one that NEEDS to shave tourists for 28% on dollar. I think we can discuss that rationally. Christi did you really just say don't worry about taxis because if we lived there we would never survive because there are so many worse things wrong? That seems a back handed defense of the island.

Also I know alot of people who live there and discuss how to get a fair price out of a taxi. They seem to have issues with it too. Heck, Christi posted the taxi rates to help people fight the taxi battle. Kudos. But we can't talk about it? And yes, clearly I am bored at the moment and have time to engage in the discussion, thanks for noticing. I would rather be diving with you Christi, but, alas, all I can do is post about taxis. It is like the weather; Everyone talks about it, but what can you DO about it?

---------- Post added July 13th, 2013 at 04:45 PM ----------

And for the record, I would be happy getting on a food thread and discussing that but taxis are the only thing going on now.

Gonna light up a cigar and start thinking about food!

 

[dmoore19]

OK, I'll Start.