So I take a taxi for about 6 soles ($2). Can you imagine a $2 fare for a 15-minute taxi ride in NYC? No, because they don't exist!
Anyway, I've figured out some general rules in Peru, as taxis can be dangerous and the prices are never posted or metered:
1) Ask at least three people (not taxi drivers) what a good fare is for your destination. Why three? Many people just don't know what the price should be, but to be nice, they tell you anyway. About three people should be enough to triangulate the correct price.
2) Once you know, hail a taxi that has a blue diamond sticker on the window (that means they're licensed). Give a polite greeting. Tell them where you are going, EXACTLY. If you miss even by a few blocks, upon arrival they will hassle you for more money. The taxi driver will then tell you if he goes there or not.
3) Here's the tough part. Once you've agreed on the location, agree on a price before getting in the cab. Usually they offer one sol or 50 cents more than the just price, and you negotiate it down. But for tourists, I've noticed I get prices that are 3-4 soles more than the just price.
Note about negotiating: Bargaining in Peru has some special unspoken rules. For example, if you want a lower price, you need to give a reason even if it's just a sentence long (I go every day and they never charge me more than 5, etc...). Then the taxi driver presents his reason why the price should be higher (it's a steep incline to get there, traffic, etc...). There should be maybe two offers per person, not more. It shouldn't take more than 20 seconds. If you don't get the price you want in that time, it's okay to say, "Thanks, but I can't pay that. Goodbye."
4) Get in fast and lock all the doors immediately. There are lots of cases of robbers trying to get into cabs.
5) If you're a woman, don't engage in polite conversation with the cab driver unless he's significantly older than you. They take that as an open door to hit on you.
6) Don't pay until you arrive exactly at where you want to be. If at the end of the ride, they say they didn't know they had to go this far, offer to get out where you are and pay the fare you agreed on.
7) Close your eyes and hold on. Imagine a NYC taxi driving a tiny car in a city without any stop signs and you get the idea.
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