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Interactive Taxi, a spin-off of a New York advertising company, is planning on placing 'interactive wireless multimedia devices' in the backs of 600 cabs in Boston, Chicago, and San Francisco (but not New York). The touch-screen systems will have movie trailers, restaurant, and other generic kiosk information, stored on a 2GB flash drive (they mention using 40GB hard drives but lost too many to road bumps).

New York will get its own screens from a separate initiative—12,000 by this fall.

Interactive cabs to start hitting the streets [TheStandard via CoranteNewYork]

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Pay for Cabs by Phone [Gizmodo]