Ride-For-Hire Tax Drivers

634 Words2 Pages

1. Before the development of Uber, ride-for-hire businesses in the United States mainly included taxicabs and limousine providers. These ride-for-hire businesses are strictly regulated for the protection of customers. Taxi drivers are required to have a medallion, which allows them to pick up passengers at any location or by request. Several taxi companies allow taxi drivers to lease cars and medallions, but the prices for medallions continue to increase. These taxi drivers overwork to eventually pay taxi companies the earnings that they owe them for leasing their cars and medallions. On the other hand, the limousine companies are required to have prearrangements instead of freely picking up passengers whenever. This requirement was created to provide taxi companies with a fair share of earning profits without the interference from limousine businesses. The regulations of ride-for-hire markets located outside of the United States contains a stricter policy. This includes decreasing the number of taxi drivers because the rise of these workers could create an overflow of traffic within a country. Traffic overflow will decrease the number of profits earned, which may lead these countries to re-evaluate the …show more content…

The ride-for-hire markets mainly benefit the customers and also reassures customers of their safety. Customers are the main priorities for taxi drivers, but these taxi drivers struggle with the regulations that are put onto them. Taxi drivers actually have to work overtime in order to receive an average amount of income. This is mostly because taxi companies give these taxi drivers a fee, which creates a stable business for these taxi companies. Many taxi companies have risen their fees for taxi drivers to obtain profitable earnings. The cost for medallions is extremely expensive and difficult to acquire. Taxi dispatch companies also benefit from these regulations because they are not given any fees and restrictions in helping taxi drivers locate

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