Do taxi drivers own their cars?

Different taxi services decide to configure their driver and car systems differently based on a variety of factors. This could include the size of the business and the size of the area they serve. Typically, someone who works for a taxi company will either own his car or rent one from the company he works for. However, the lease option is generally the more common of the two.

So why is it beneficial for drivers and the company to offer a leasing option instead of all drivers owning their own taxis? Reason number one is that it would be very difficult for most taxi companies to get enough drivers if they only let the people who own their vehicles work for their company. Buying a car expressly for work purposes is a very large investment, and many people who start in the sector would not have the desire or the economic resources to make such an investment.

Driving a taxi, like many other careers, may not be for everyone. Many people try it for a few years, or even for a short time, and decide they don’t like it. Dealing with strangers all day, having to drive drunk people after bars close, and the threat of potential muggings often tend to drive people away from the profession. They may not realize they’ll feel this way until they’ve tried it for a while, so the car leasing option is preferable.

On the other hand, someone might start driving a taxi and find that they love it. For these people, it makes more sense to invest in their own car. Once they realize this is a lifetime career for them, they can increase their profit margins by owning their own car instead of leasing it. Although most taxi companies lease their vehicles, many will have a plan that allows drivers to own their own car if that is how they prefer to do business.

Even if you have your own car, you will have to rent certain equipment from the company you work for. Things like a radio and meter are usually the property of the taxi company. If you want to work for them, they will usually charge you a small fee to rent the required equipment to install on your own vehicle.