Abstract: The present invention relates to a method for operating a prepaid taxi service. The method for operating a prepaid taxi is performed by a prepaid taxi management server connected to a reserving user personal computer (PC), an Internet payment system, and a taxi driving system over an Internet-based network. The method includes (a) receiving an origin and a destination searched for and selected by a reserving passenger who desires to use a prepaid taxi, (b) searching for and providing an optimal route by searching for routes between the origin and the destination, and calculating a travel distance along the optimal route, (c) calculating a taxi fare based on the calculated travel distance, and (d) receiving payment of the taxi fare calculated at (c) in conjunction with the Internet payment system.