Soldato
The database taxis use is based on customers state of inebriation not distance.
Round here it's by the mile, locals get charged less if your a regular and there is a standard minimum fee of £3 no matter where you go.
It's on the meter, if it isn't distance it's time as well. Meaning your also paying when your stuck in traffic for 30 minutes and haven't moved at all.
I have no doubt that some would probably use that sort of pricing, but it would be a seriously low minority of firms.