I've seen this in many places in the middle east and eastern europe. Interesting in that NY cabbies - who often come from those places - generally grumble at having to move their stuff if you want to sit up front...

A side note is that I've found that you are much less likely to be taken for a ride if you sit in the front in places where it is the norm. Whether they just think you're watching more closely or just more familiar with the place, I've almost never had a problem when I was in the front seat.

In Istanbul, where male pax always ride in the front, virtually every time a colleague or visitor reports being taken for a ride, I ask and they tell me they were sitting in the back.