Taxi fares across the country are set to increase by 12% on average from September 1.
The National Transport Authority Board approved the increase last Friday, saying it "reflects the increase in operating costs faced by taxi drivers".
The increase is the first since 2018 when taxi fares rose by 4.5% on average.
Read more: Just 32 taxis added to Dublin fleet this year as punters left stranded at night
From September, it will also be mandatory for all taxi drivers to accept cashless payments for journeys when requested by customers.
General Manager of FREE NOW Ireland Niall Carson said the increase will "help taxi drivers earn a more reasonable living".
He said: "We welcome the NTA’s introduction of new national fares for taxi drivers across Ireland following its consultation process this month.
"The proposed increase of fares by 12% will help taxi drivers manage rising operating costs and earn a more reasonable living while they continue providing essential public transport throughout the country.
"An overwhelming majority of our driver partners surveyed last month stated that their ability to stay working as a taxi driver would be compromised if the NTA’s fare increase hadn’t come into effect."
Mr Carson said that FREE NOW hopes "the new rates will not only support existing taxi drivers in maintaining their careers in the sector, but will also help aspiring drivers to consider joining the licensed taxi driver fleet."
He also welcomed the new mandate for taxi drivers to facilitate cashless forms of payment.
"As we know from our own app usage and transaction preference – cashless payment options align with our increasingly cashless society and provide passengers and drivers with more flexibility to book and accept journeys," he said.
"FREE NOW already facilitates contactless payment on our app via Credit and Debit Cards, PayPal, Apple Pay and Google Pay."
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