Hangzhou taxi drivers always use the meter as required by law. Good luck getting a taxi during the tourist weeks (Chinese New Year, May Golden Week, and October National Week); also, taxis between 7:30 and 8:45am and 5:30-7:00pm are difficult to flag, as they are always full. A good rule of thumb is that if you need a taxi, there won’t be any, but if you don’t need one, they will be driving extremely slow in the right lane disrupting traffic and honking and flashing their brights at you. While taxi drivers are generally incompetent, they are honest and will take you the fastest route (unlike other cities in China). Keep in mind that for all routes under 4km it’s the same price - 10 RMB - regardless of how many people you are. So if you travel in a small group of 3 or 4 people, it’s almost the same price if you’re taking a taxi or riding a busline. There is no time-cost in Hangzhou for the taxis, it’s just for the distance. 4km is about the distance half way around the lake.
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