Taxi and Limousine Services


The 7,800 taxi and limousine services in the US generate revenue by charging fares for transporting passengers between locations or leasing vehicles and medallions/licenses to drivers. Legal taxi and limo companies typically require a license or “medallion” to operate within a city. The cost to acquire a medallion can be high because regulatory organizations limit the number of medallions. Local codes may also regulate fares, vehicle safety, language fluency, and driver competence. Many drivers work as independent contractors and are licensed through or rent vehicles from taxi or limousine companies.

Risk Of Crime

Taxi and limousine service providers may pick up passengers in unsafe neighborhoods, putting drivers and vehicles at risk for crime.

Highly Regulated And Limited

In major cities, the taxi and limousine services industry is highly regulated by municipal commissions and boards.