Car service

The taxicabs of the United States make up a mature system; most U.S. cities have a licensing scheme which restricts the number of taxicabs allowed. As of 2012, in the United States: the total number of taxi cab drivers is 233,900; the average annual salary of a taxi cab driver is $22,820; the expected percent job increase over the next 10 years is 16%.

Some cities use "taxi medallions" as permits for taxicab drivers to pick up passengers. Because the medallion system is a government-created artificial constraint on the supply of taxicabs, and historically cities have increased the number of medallions much more slowly than the growth in demand for taxis, medallions have generally been considered a great investment; though recently the increase in supply of cars for hire created by real-time ridesharing companies has been eroding the value of medallions.

Taxicab companies may be independently owned small businesses with only one taxicab and driver or have fleets of 100 or more taxicabs. Drivers are rarely employees of the company, and usually lease the taxicab on a per-shift basis. Cabs can also be owned by separately-incorporated small businesses that subscribe to a dispatch service. The owner/driver will pay a monthly fee to the taxicab company; purchase and maintain his own vehicle, and may in turn lease shifts to other drivers.

The taxicabs of the United States make up a mature system; most U.S. cities have a licensing scheme which restricts the number of taxicabs allowed. As of 2012, in the United States: the total number of taxi cab drivers is 233,900; the average annual salary of a taxi cab driver is $22,820; the expected percent job increase over the next 10 years is 16%.

In New York City and other cities, a "medallion" is required in order to legally pick up passengers flagging on the street. Medallions, or CPNC (Certificate of Public Necessity and Convenience), may also be sold in Boston, or Chicago, but in San Francisco—one of the few other cities that has medallions—the sale of medallions became prohibited by Prop K in 1978. This proposition was adopted to stop speculators from driving the price of medallions up beyond the reach of the people who provide the service—the drivers. In 2010, the City of San Francisco attempted to allow the sale of medallions (for an estimated $250,000 each) in order to balance the City budget.

According to The Washington Post, medallions were "the best investment in America", but—due to increased competition from app-based car services and ridesharing growth from companies like Uber and Lyft—taxi medallions are now decreasing in price.

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Wikipedia