How do NYC taxi drivers make money?

During the driver's shift, they collect 100% of the fares and tips. The difference between what they bring in, and what they pay to lease the vehicle, is how much they make in wages (usually about $25,000 - $40,000 per year depending on a variety of factors).



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But the boom in popularity of ride-hailing services, like Uber and Lyft, severely cut into taxi industry profits in recent years. The loans began to inflate because of predatory lending practices and industry leaders' driving up of the medallion prices. This meant crushing debt for owners.

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But for the most part, a cab company owns the vehicle. They lease it to their drivers who in turn get to keep 100% of the fares and tips (some companies charge less for the lease, but retain a portion of the fares).

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Average salary and job outlook for taxi drivers Taxi drivers make an average of $24,942 per year .

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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.

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Research has shown that taxi drivers are at risk for numerous health concerns, such as low back and leg pain, linked to their highly sedentary occupation, long work hours and stressors related to the job (e.g. low income, safety threats).

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It is against the law for any driver to refuse you service based on your destinations or the number of them you need. (Keep in mind, the taximeter will run as one continuous trip; it is not turned off and then started again with every stop. You pay the entire fare at the end of your trip.)

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Tips are big business in New York, as they are in the rest of the US. But sadly you'll be expected to pay over the odds in the Big Apple. 20% of the fee is the recommended amount. If you're paying with card instead of cold hard cash, the amount of gratuity will automatically be added to the charge.

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Taxis and Ride Services Taxi drivers should be tipped 10-20% of their fare, which should be calculated automatically on the screen. Limousine and livery drivers, on the other hand, should be paid no less than 15% as their services are typically more deluxe.

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Taxi drivers typically site that the ridesharing services are not as safe and don't have the same types of standards and insurance that taxi drivers must carry. They often argue that these apps get around the taxi laws by offering technology that blurs the line between traditional taxi services and ridesharing apps.

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With recent innovations in technology and ride-sharing, the demise of taxi driving is inevitable because ride-sharing receives major support and will not fail unless Uber or Lyft themselves find a way to limit driving services.

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All drivers I have known prefer longer rides. Many taxi drivers often have a daily target to achieve after which they'll just hang their gloves and call it quits for the day.

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