How does taxi driver get paid?

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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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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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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As a taxi driver, you are considered self-employed if you set your own hours and no one supervises how you do your job. Even if you rent your cab from a fleet and use a dispatcher, you are considered an independent contractor.

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For taxi drivers, accepting upfront payments can help to reduce the risk of robbery or assault. Passengers may also feel safer knowing that they have already paid for their journey and don't need to carry cash with them. However, some passengers may be hesitant to exchange cash due to concerns about fraud or scams.

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As a taxi driver you'll spend many hours of your day sitting behind the wheel, and this can cause a lot of stress on your body. Regular physical activity helps reduce the effects of stress by: Encouraging the release of 'feel good' endorphins.

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  • Non-payment. Non-payment (or bilking as it's also known) is an age-old problem for taxi drivers. ...
  • Robbery. One of the biggest threats for taxi drivers is armed robbery. ...
  • Health issues and tiredness. Have you done your 10,000 steps today?


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Taxi drivers can be hired for a shift, or on contract for a long-term basis. Some taxi drivers own their taxis, while others rent them.

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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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There are over 43,904 taxi cab drivers currently employed in the United States. 23.6% of all taxi cab drivers are women, while 76.4% are men. The average taxi cab driver age is 47 years old.

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Skills and qualities
  • to be a confident driver who is able to drive well in any road and weather conditions.
  • a helpful, trustworthy and patient manner.
  • some number skills, as you'll be dealing with cash a lot.
  • to be able to deal with all types of people including the occasional awkward or difficult customer.


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These drivers often work 10–12 hours a day, six days a week (2). Research across various cities has shown that these long hours, combined with the sedentary nature of their work, high stress, and low rates of insurance and healthcare access (3), contribute to poor health outcomes (4–6).

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The majority of cabbies are self employed in that they do not work for the cab company ( which actually owns the vehicle and the medallion) but, rent the vehicle daily. So, before they even step foot in the cab they are dealing with vehicle rental, and gas.

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