Taxis work like this in Panama. Prices vary wildly ( but are low by developed world standards) and trying to get across town in times of high traffic is nearly impossible, nobody will take you ( they ask you where you're going, snort and drive away) until you offer at least four times the standard fare.

They're also unsafe, my brother was robbed at gunpoint by a fake taxi. I've heard multiple women who had to jump from a moving taxi to escape a potential rape.

Uber is more expensive in Panama, but I use it nearly exclusively.