Transportation in form of taxicabs in the United States
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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 the total number of taxi cab drivers in the United States is 233,900; the average annual salary of a taxi cab driver is $22,820 and the expected percent job increase over the next 10 years is 16%.[1]
Some cities use "taxi medallions" as permits for taxicab drivers to pick up passengers. Because the medallion system is a government-created intentional 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;[2][3] though recently the increased supply of cars for hire created by ridesharing companies has been eroding the value of medallions.[4]
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.
Ridesharing companies are major competitors to taxi companies, providing on-demand for-hire car service through a smartphone app in many US cities. They are generally treated as black-car services from a legal standpoint and are not generally regulated under Taxi laws. This can cause friction with both local governments and taxi companies.
^"Taxi Drivers, Ride-Hailing Drivers, and Chauffeurs: Occupational Outlook Handbook". www.bls.gov. U.S. Bureau of Labor Statistics.
^Horwitz, Jeff; Cumming, Chris (2012-06-06). "Taken for a Ride". Slate. Archived from the original on 2012-07-30. Retrieved 2018-01-15.
...the taxi medallion system, a regulatory scheme in which the right to operate a taxi is thoroughly divorced from the actual work of driving one... When New York City first issued taxi medallions in 1937, they were just licenses, worth $150 in today's terms. ... In New York, Chicago, and Boston, the number of medallions has barely budged since they were issued in the 1930s. New York went 60 years without issuing new medallions, and it's only been a trickle since. ... New York's tight limits on the number of medallions in circulation has suppressed the supply of cabs. There are 13,237 medallions now outstanding, a few hundred fewer than in 1937, but a huge supply of drivers competing to lease them.
^Van Gelder, Lawrence (May 11, 1996). "Medallion Limits Stem From the 30s". The New York Times. Archived from the original on 2017-03-25.
...after the stock market crash in 1929, job seekers swelled the ranks of New York City cabdrivers to 30,000 in 1930. ...too many cabs were chasing too few passengers in the Depression years. "The Haas Act tried to remedy that problem by stopping the issuance of any new vehicle licenses."
^Madhani, Aamer (18 May 2015). "Once a sure bet, taxi medallions becoming unsellable". USA Today.
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