Do you have to pay a flat rate for a taxi?

If you lease, you must pay a daily rate out of your incoming fares, plus the cost of gas. Some companies take a percentage of your fare instead of a flat-rate lease payment. Research the taxi company policies carefully to ensure driving a taxi is a money-making venture before you commit.

How does a taxicab company make their money?

While many taxicab companies make money by splitting fares with their drivers, others generate income by leasing their vehicles to the drivers, whose earnings are based on how many fares they get.

How does a taxi company split the fare?

Some taxi companies split fares with the driver, giving the company an interest in how much business is dispatched. A ratio of 50 or 60 percent to the company is common, and either the company or the driver pays for gas.

How much of the fare do taxi drivers keep?

Determining a taxi driver’s pay varies based on several factors. If you own your own taxi, you get to keep the entire fare, minus expenses. If you lease, you must pay a daily rate out of your incoming fares, plus the cost of gas. Some companies take a percentage of your fare instead of a flat-rate lease payment.

While many taxicab companies make money by splitting fares with their drivers, others generate income by leasing their vehicles to the drivers, whose earnings are based on how many fares they get.

How much does a taxi company charge a driver?

First, the cab companies charge the driver a percentage of the fare in order to process the cards. That fee can run up to ten percent according to some drivers that I spoke with.