A taxi meter is a calibrated electronic device that calculates your fare based on a combination of distance traveled and time elapsed. When the taxi is moving above a certain speed (the "crossover speed"), the meter calculates the cost based purely on distance (e.g., every 200 meters). When the taxi is stuck in traffic or moving slowly, it switches to a time-based tariff (e.g., every 60 seconds). This ensures the driver is compensated for their time even in heavy congestion. In 2026, meters are often integrated with GPS for high accuracy and include a "flag drop" or base fare—the initial charge you see as soon as the meter is turned on. Some cities also have "extra" buttons for luggage, night surcharges, or tolls, which the driver must manually add. For the passenger, the meter provides a transparent, regulated price, preventing the "haggling" often associated with unmetered private hires or unregulated cabs in many global tourist destinations.