Taxicab drivers work under a variety of circumstances due to regulations of public
utility commissions, city, town, and State ordinances, and union and company rules.
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Drivers may own taxicabs or rent them on a flat rate or mileage basis.
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Their pay may be in the form of a straight salary, a commission on the amount of fares
collected, the balance of the total amount collected minus rental fees, and miscellaneous
expenses, or salary plus commission.
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Tips usually represent a substantial portion of the driver's pay.
Usually, cab owners do not control a driver who leases a taxicab on a flat-rate basis.
The cab owner:
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has no interest in the number of miles of operation, and
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receives a certain income regardless of whether or not the cab driver operates the
cab.
However, if the cab driver leases the cab on a mileage-rate basis, the lessor's income
depends on the use of the cab and the lessor must have some control over the driver
to insure against investment loss.