Taxis are usually recognizable by their yellow colour and two blue stripes along the side. Taxis operating inside Funchal also carry the sign TAXI on top. Those operating outside Funchal usually work on a kilometre basis without using a taximeter.
Taxis have an official price list approved by the Regional Government and the Regional Taxi Drivers Association with set prices for pre-defined routes. You'll find it on the back of the driver's or the passengers seat. However, don't be afraid to bargain.