HINT: It will be convenient to let $V_x=\{x\}\times\Bbb R$ for $x\in\Bbb R$ and to let $\Delta=\{\langle x,x\rangle:x\in\Bbb R\}$, the diagonal in $\Bbb R^2$. For any $x=\langle x_1,x_2\rangle\in\Bbb R^2$, $|x_1-x_2|$ is the distance from $x$ to $V_{x_1}\cap\Delta$, the vertical distance from $x$ to the diagonal. Thus, if $x=\langle x_1,x_2\rangle,y=\langle y_1,y_2\rangle\in\Bbb R^2$, either
- $x_1=y_1$, $X,y\in V_{x_1}=V_{y_1}$, and $d(x,y)$ is just the usual Euclidean distance between $x$ and $y$ in $V_{x_1}$;
- or $x_1\ne y_1$, and $d(x,y)$ is the sum of the vertical distances from $x$ and $y$ to $\Delta$ and the horizontal distance between $V_{x_1}$ and $V_{y_1}$.
We can make this easier to visualize by looking at an isometric copy of the space. Define
$$\varphi:\Bbb R^2\to\Bbb R^2:\langle x,y\rangle\mapsto\langle x,y-x\rangle\;;$$
$\varphi$ is a vertical shear that holds the origin fixed and pushes $\Delta$ to where the original $x$-axis was. For $x=\langle x_1,x_2\rangle,y=\langle y_1,y_2\rangle\in\Bbb R^2$ let
$$\rho(x,y)=\begin{cases}
|x_2-y_2|,&\text{if }x_1=y_1\\
|x_2|+|x_1-y_1|+|y_2|,&\text{otherwise}\;.
\end{cases}$$
It’s not hard to show that $\varphi$ is a bijection and that for all $x=\langle x_1,x_2\rangle,y=\langle y_1,y_2\rangle\in\Bbb R^2$, $d(x,y)=\rho\big(\varphi(x),\varphi(y)\big)$, so that $\langle\Bbb R^2,d\rangle$ is isometric to $\langle\Bbb R^2,\rho\rangle$, and one is complete iff the other is.
But $\rho$ is easy to visualize: $\rho$ is a variant of the taxicab metric in which the only streets are the verticals $V_x$ and the $x$-axis. The $\rho$-distance from $x=\langle x_1,x_2\rangle$ to $y=\langle y_1,y_2\rangle$ is the ordinary distance if $x$ and $y$ are on the same ‘street’ (i.e., if $x_1=y_1$, and they’re on the same vertical street, or $x_2=y_2=0$, and they’re on the same horizontal street), and in all cases it’s the length of the shortest route from $x$ to $y$ along the streets.
Now show that a $\rho$-Cauchy sequence is either eventually in some $V_x$, in which case convergence is easy, or convergent to the point on the $x$-axis determined by the limit of the $x$-coordinates of the points of the $\rho$-Cauchy sequence. (If you prefer to work directly in $\langle\Bbb R^2,d\rangle$ and give $\rho$ a miss, show that a $d$-Cauchy sequence is either eventually in some $V_x$ or convergent to some point of $\Delta$. You can also, if you like, show that $d$ is a taxicab metric in which the streets are the $V_x$’s and $\Delta$, and distances along $\Delta$ are $\frac1{\sqrt2}$ times the usual Euclidean distances.)