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Wow, they could buy a ticket for a coast to coast flight for a similar price! Is a common issue in all the big cities all over the world: if you don't set the price before the ride you risk unpleasant surprises. I still remember a similar case in Rome, few years ago, when a taxi driver charged a Japanese couple almost 2000€ for a normal city ride. That man incurred in a heavy fine and a temporary suspension of his authorization (in Italy there's a cap on the number of taxis that can operate in each district so people need the authorization of the mayor to drive one).
Sure we can blame the pedicab, and yes he is wrong, but people need to have some common sense too. No matter where you go you need to know the cost and what you get for it. Its your own fault if you just get into something and then wonder about the cost of it after.