The price break sounds mighty nice to taxi riders.
"I think it's pretty nice, especially in this economy," one taxi rider said.
Group rates of between $3 and $4 per person were introduced for taxis on three routes. The plan was initially set to begin last month, but was pushed back due to the two-day snow storm that hit the New York area.
"You can save money during these tough times and also, there are less cars on the roads," another taxi rider said.
While some cabbies are for it, others don't quite support it.
"I'm not a bus service, I'm a taxi driver," a driver told Eyewitness News.
Like buses, the taxis have designated departure and drop-off locations.
The departure locations include: West 57th Street and Eighth Avenue; West 72nd Street and Columbus Avenue; and East 72nd Street and Third Avenue.
Taxi and Limousine Commissioner Matthew Daus says passengers will pay less and drivers will make more money.
The group rate only applies to the morning rush hours, 6 a.m. to 10 a.m.