Whether a taxi driver uses their own car depends entirely on the specific business model and local regulations of the city. There are generally three main arrangements. First, the owner-operator model, common in many European cities and for independent contractors, where the driver owns the vehicle, pays for the "taxi medallion" or permit, and is responsible for all maintenance, fuel, and insurance. Second is the fleet lease model, prevalent in major hubs like New York City or London, where a large company owns a fleet of standardized vehicles (like the iconic Yellow Cab or Black Cab) and "leases" the car to a driver for a daily or weekly shift. In this case, the driver does not own the car and must return it at the end of their shift. Third is the private hire model used by services like Uber or Grab, where drivers are almost always required to use their own personal vehicles that meet specific safety and age standards. In 2026, many fleet drivers are transitioning to owner-operators of electric vehicles to take advantage of government subsidies and lower long-term operating costs.