Taxis in Iceland: all about taxis, app-based rides, and off-road transport on the volcano island
- Damian Brzeski
- Aug 17
- 12 min read
Icelandic taxis don't have yellow paint or distinctive stripes – but they can take you from your hotel in Reykjavík to the depths of a glacier on wheels the size of a human.
How to recognize them, how much you'll pay for a ride, why Uber doesn't work here, and why a regular taxi won't work in the interior? This guide reveals everything you need to know to get around Iceland stress-free (and without overpaying).
What are taxis like in Iceland?
Taxis in Iceland aren't uniformly colored—they can be various models of passenger cars, from sedans to minivans and SUVs, often in neutral colors. They're easily recognized by the illuminated yellow "TAXI" sign on the roof .
When this sign is illuminated , it means the taxi is free and ready to take a passenger; if it is off, the vehicle is occupied or out of service.
Every licensed taxi is equipped with a taximeter (a device that calculates the fare) with a visible initial fare balance and a display of the rate per kilometre.
There should also be information about the driver inside the vehicle – name, surname, photo and license number – confirming that the driver has the required authorizations.
Typical Icelandic taxis are in good condition , equipped with seat belts, airbags, and often GPS. There is no standard license plate design for taxis – they use standard Icelandic plates (white reflective laminate with the blue country symbol "IS" on the left).
However, official regulations require that a vehicle intended for the transport of passengers for a fee must be clearly marked as a taxi and have a clear price list on board – so that the passenger knows in advance what the applicable fares are, whether according to the taximeter or a pre-determined tariff.
Official taxi markings – how to distinguish a legal taxi?
To ensure you're using a legal, licensed taxi in Iceland, pay attention to a few distinguishing features. A legal taxi should have:
Illuminated "TAXI" sign on the roof – the absence of such marking may suggest that the vehicle is not an authorized taxi.
Taximeter with an up-to-date starting fare – an honest driver always turns on the taximeter at the beginning of the trip. If the meter isn't working or the driver refuses to turn it on, it's better to forgo the service.
Driver ID inside the vehicle – driver details (photo, name, license number) issued by the relevant authority should be visible.
License sticker on windshield – The Icelandic Transport Authority (Samgöngustofa) issues special stickers confirming taxi licenses; these are usually located in the corner of the windshield on the driver’s side.
Company logo and name – Most taxis belong to organized taxi companies (also known as taxi stations). Their vehicles have the company logo and name, as well as the telephone number for the central office, affixed to the lower part of the windshield or on the doors. For example, taxis operated by the Hreyfill or BSR corporations have clearly marked these companies.
If the vehicle does not have the above features (e.g. it lacks a taximeter, official stickers, or the driver avoids showing his license), there is a risk that it is an unauthorized carrier.
For safety, use the services of well-known taxi companies – Iceland has liberalized the transport market in recent years, which has resulted in a surge in new, smaller operators, not always with a good reputation.
Local sources recommend using the two largest and most reliable taxi companies in Reykjavík, Hreyfill and BSR , which are considered the most reliable. In Akureyri, the largest city in the north, BSO (Bifreiðastöð Oddeyrar) is the main and reliable taxi company.
Always make sure you get into a vehicle marked according to the above guidelines – this guarantees that the taxi is legal and covered by regulations that protect passengers.
Taxi fares and tariffs in Iceland
Taxi fares in Iceland are regulated and relatively high compared to many countries. The fare is metered , and the final cost consists of the following components:
Entry fee (also known as the "door slam") – collected at the start of the course, regardless of distance traveled. In Reykjavík, it is approximately ISK 695 (approximately €5.00).
Distance Fee – Charged for each kilometer traveled. In Reykjavík, the rate is approximately ISK 280 per kilometer (approximately €2.00/km).
Waiting time fee – If the taxi has to wait for someone (e.g., at the pickup address or while stopped during the journey), a waiting time fee is charged. This fee is approximately ISK 130 per minute , or approximately ISK 7,800 per hour (this equates to approximately €0.93 per minute or €56 per hour).
In addition to the standard fare components above, additional surcharges may apply in certain situations. The time of day and day of the week affect the rate – journeys at night and on holidays can be more expensive than on weekdays.
For example, for a night trip or on public holidays you can expect a fare that is approximately 10% higher (in moderate traffic +5%, in heavy traffic even +10%).
In addition , small surcharges are added to the bill for additional passengers and luggage : for each person above four passengers approx. ISK 140 (€1) and a similar amount for each large piece of luggage placed in the trunk.
It is worth familiarizing yourself with the approximate costs of typical routes to estimate your taxi budget.
For example, a ride from Keflavík International Airport to Reykjavík city center (approx. 50 km) costs around ISK 16,000–17,000 during the day and up to ISK 19,500 at night. A ride from Reykjavík to the Blue Lagoon (approx. 47 km) is on the order of ISK 12,000 during the day and ISK 14,500 at night.
However, a short trip within Reykjavík itself, e.g. from the city centre to Hallgrímskirkja church (1.5 km), will cost approximately ISK 975 during the day and ISK 1,100 at night.
These price lists are usually displayed in vehicles or available on taxi companies' websites, and taximeters automatically take into account the day/night tariff and any additional fees.
Thanks to the regulation of rates by the authorities, there should be no large price differences between different companies - each licensed taxi adheres to the applicable tariff.
Apps like Uber, Bolt and local ridesharing – do they work in Iceland?
In many countries, tourists have become accustomed to using apps like Uber and Bolt to order rides. However, Uber and Bolt don't operate in Iceland – the country has not yet approved such platforms.
The main reason is transport law , which requires that every driver transporting passengers for a fee has the appropriate license and insurance, and that the vehicle itself is registered as a taxi.
Uber and Bolt's business models, which rely on private drivers without taxi licenses, conflict with Icelandic regulations . Furthermore, Iceland is a small market (less than 400,000 inhabitants), which means the demand for ride-sharing services is limited, and traditional taxi companies meet local demand.
Despite the lack of international apps, there are local mobile solutions that make hailing rides easier. Iceland's largest taxi companies have their own apps: for example, Hreyfill offers an official mobile app for hailing its taxis.
You can use it to call a taxi, track its arrival and make card payments – this solution is convenient, although tourists should remember that registering in the app may require providing a local phone number (which has been reported as a difficulty).
Another option is the international platform TaxiCaller , which is used by some Icelandic companies – it allows you to order taxis through a universal app.
An interesting newcomer to the Icelandic market is the Hopp app . Initially known as an electric scooter operator, it now also offers an Uber-style ride-hailing service.
It works on a similar principle – the user orders a ride through the app, and the nearest available driver (with a license) accepts the order.
However, it is important to remember that Hopp integrates legal carriers (these are not "private rides", but registered taxis).
Before traveling, it is worth creating an account with Hopp (phone number verification is required, so it is a good idea to do it in advance, before departure, when we have active roaming or a local SIM card).
To sum up, although you won't find Uber or Bolt in Iceland , you do have efficient traditional taxis and their apps, as well as a local alternative in the form of Hopp.
How to order a taxi in Iceland?
There are several ways to order a taxi – the choice depends on the situation and our preferences:
Taxi ranks – in larger cities, especially Reykjavík, there are official taxi ranks (marked with yellow signs reading "Taxi" or "Bílastöð" ). You can find them at airports, train stations, hotels, main shopping streets, and popular tourist attractions. To use one, simply approach the first taxi in line at the rank – the drivers will pick up passengers one by one.
"Waving" on the Street – In Reykjavík, you can try to hail a taxi right on the street. Simply stand in a visible position and extend your hand. If the taxi is free (illuminated "Taxi" sign on the roof), it should stop. There are plenty of taxis in the city center, so hailing one "on the street" is usually possible, although it may be more difficult during rush hour or in bad weather.
Calling a taxi company is a traditional and reliable method. It's worth saving the numbers of the major taxi companies. Hreyfill (tel. +354 588 5522) is one of the oldest companies in Reykjavík (operating since 1943) and also offers rides for larger groups and private tours. BSR (Bifreiðastöð Reykjavíkur, tel. +354 561 0000) – the largest taxi company in the capital, operating since 1921. Also operating in Reykjavík are Borgarbílastöðin (tel. +354 552 2440), a smaller family-owned company renowned for its quality service. In other regions of the country, local taxi companies operate – for example, in Akureyri, the aforementioned BSO (+354 461 1010). In the east and south of the country, you'll also find local taxi companies, whose contact details are easily obtained from hotels or tourist information centers. When calling the taxi company, you usually provide your location and destination; the dispatcher will then send you the nearest available taxi, providing an estimated wait time (usually a few minutes in the city).
Mobile apps and online bookings – as mentioned above, many taxis can be booked through apps. The Hreyfill app allows you to order a taxi from this company without speaking to an operator. Universal apps like TaxiCaller also work – you can point to a location on a map and book a ride electronically. It's worth installing and configuring these apps in advance to save time on the spot. Furthermore, some companies allow online bookings on their websites – this is especially true for airport transfers or pre-booking. If you need a taxi, for example, early in the morning to the airport, book it the day before via the website or by phone – you'll be sure of a punctual arrival.
Through a hotel or restaurant – Icelandic taxi drivers work well with the tourism industry. If you're staying at a hotel or dining at a restaurant, the staff will happily order a taxi for you by phone. Hotels often partner with reputable companies, which increases the reliability of the service. Simply ask the receptionist to order a taxi for a specific time.
As you can see, ordering a taxi in Iceland shouldn't be a problem - there are plenty of taxi ranks and taxis in Reykjavík , and outside the capital, the key is to have the contact details of a local driver or use the help of the host/receptionist.
It's always a good idea to order a little in advance during peak times (e.g. late in the evening after bars close or during large events) to avoid long waits.
Off-road transport – glaciers and the interior
Iceland is known for its rugged, inaccessible interior ( the Interior or Highlands ) and vast glaciers. Regular taxis and passenger cars can't reach it – many of the interior's roads are mountain trails designated as F-roads , requiring a 4x4 and an experienced driver.
That's why specialized off-road transport is developed here, often in the form of organized Super Jeep tours. Super Jeeps are heavily modified off-road vehicles (e.g., Toyota Land Cruisers, Fords, or special trucks) on giant 38-50-inch tires , with raised suspension, and often equipped with a snorkel (a tube for wading in water) and a winch.
Such vehicles can overcome deep river fords, snow, sand, and steep, rocky mountain paths – places where a regular SUV would be unable to cope.
Despite their extreme appearance, Super Jeeps are safe and comfortable for passengers: they usually accommodate from 4 to even 10 people in the cabin (depending on the model), have seat belts and heating, and are driven by licensed off-road guides.
For larger groups, so-called Super Trucks are used – converted off-road buses on giant wheels, with a capacity of up to 40–50 people (such vehicles transport tourists, for example, to the glacier tunnel "Into the Glacier").
Who offers off-road transport?
Many travel companies offer off-road services, primarily as organized tours or private, custom-made trips. In Reykjavík, one of the most well-known is Superjeep.is – a company founded in 2002 that specializes in full-day expeditions to the interior and remote attractions.
Also popular are trips offered by large adventure agencies, such as Arctic Adventures (which offers numerous Super Jeep expeditions, including aurora hunting and exploration of the Landmannalaugar interior), Mountaineers of Iceland (famous for expeditions to the Langjökull glacier in modified trucks), or Midgard Adventure in the south of the country (they organize trips to the Þórsmörk Valley, among other things).
There are also local companies operating in regions outside the capital: for example, Glacier Jeeps in southeast Iceland offers tours of the Vatnajökull glacier using specially modified 4x4 vehicles, while in the north, Try Iceland Tours and Geo Travel take tourists to the interior of the Lake Mývatn region and the Sprengisandur plateau.
What should you pay attention to when choosing off-road transport?
First and foremost, make sure you choose a licensed tour operator . These companies prioritize safety, have qualified drivers, and have the appropriate permits to enter protected areas.
It's worth checking the type of vehicle – smaller Super Jeeps (for 4-8 people) provide a more intimate experience and can get into tighter spots, while larger trucks can take large groups but sometimes won't reach every hard-to-reach corner.
It is also a good idea to ask about the equipment and conditions : for example, whether the price includes helmets, snowshoes or other equipment (if it is a glacier expedition), whether the vehicles have radio communication and spare equipment in case of a breakdown.
Remember that off-roading in Iceland depends on the weather – a good company monitors the conditions and will cancel or modify the route if necessary (your safety is paramount).
Never attempt to venture into the interior in a rented passenger car without experience! Using the services of super jeep experts is the best and safest way to see the Icelandic wilderness and glaciers up close.
Practical advice for Icelandic taxi passengers
Finally, some practical tips that will make it easier to use taxis and transport in Iceland:
Tipping – In Icelandic culture, tipping is optional . Drivers don't expect a tip , and taxi meters charge a fair price with no hidden fees. However, if you're very satisfied with the service, you can round up the bill or leave a small amount as a token of gratitude. The driver will certainly be pleased, but a polite thank you for the ride will also be appreciated.
Language – English is common . Most taxi drivers in Iceland can easily communicate in English (in addition to Icelandic, of course), especially in Reykjavík and tourist towns. You don't need to know Icelandic to communicate with your driver about addresses or directions. It's a good idea to have the exact address or name of the place you want to go written down (e.g., on your phone or on a piece of paper) – Icelandic names can be difficult to pronounce, and showing them written down will make things easier.
Payments – In Icelandic taxis, you can pay with both cash and cards . The country is highly digitalized, and virtually every taxi is equipped with a payment terminal – drivers accept credit and debit cards (Visa, MasterCard, and sometimes even American Express). Before starting the ride, you can ask to be sure whether you can pay by card – the answer is almost certain to be yes. Mobile payments are also becoming increasingly popular (Apple Pay, Google Pay), and if you book a taxi through an app, you can often pay cashless in the app itself. You'll receive a receipt (printed or electronic) at the end of the ride – it's worth keeping it, if only as a souvenir or in case of a complaint.
Punctuality and waiting times – Icelandic taxi drivers are renowned for their punctuality and reliability . If you book a ride for a specific time (e.g., to the airport in the morning), you can expect the driver to arrive on time, often even a few minutes early. In Reykjavík, the arrival time for a free taxi after a phone call is usually 5–15 minutes , depending on the time of day and traffic. Taxis are very busy on Friday nights (after the clubs close), so waiting times are longer, so it's best to book in advance. Generally, however, services operate 24/7, and dispatchers and drivers strive to minimize customer wait times.
Availability outside Reykjavík – Outside the capital and a few larger cities, taxis are limited. In smaller towns, there are often only one or two taxis per area, often operated by private drivers who moonlight on their main jobs. Therefore, in rural areas, it's always better to call ahead and arrange a ride rather than rely on finding a taxi on the spot. For example, in the Westfjords or the eastern part of the island, taxis may not be readily available at all hours – a driver may need to travel from a neighboring town, which will increase the wait time and cost (because you'll be charged for the pick-up).
Public transport (though intercity buses run infrequently, they can help with parts of the journey), renting a car for a few days to explore the area on your own, or asking your guesthouse host to help arrange transportation. Hitchhiking is also legal and quite safe in Iceland—many tourists use it, especially in off-the-beaten-path areas—but always exercise caution and have a backup plan.
We hope this guide will help you navigate taxis and other forms of transportation smoothly during your visit to Iceland.
By knowing local rules and transportation options, you'll be able to navigate the island efficiently—from the streets of Reykjavík, through the scenic routes of the interior, to the glacial wilderness—without stress or unpleasant surprises. Happy travels!
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