Interesting thread. I don’t think anyone is speaking from experience here. If that’s the case, then as a son of a taxi driver, may I?
First of all, taxi business in NY is different than here in Louisiana. So I will speak about Louisiana and I will speak about my dad and his friends who are also in the cab business.
Unlike NY, a majority of people drive their private cab, instead of working for a company. Depending on the season, depending on the games in town, depending on the gas prices, depending on the conventions in town, and many other factors, an average 8-10 hour shift earns you about $200 per shift. That is if you charge your passengers honestly.
I know some people (young cab drivers who graduate from university and go into cab for money) charge their out-of-state customers whatever they want because those customers don’t know the fares. In most cases they are from richer places (North) and south’s high prices are okay for them. Then there are special occasions where people want to do private stuff in the car and youngsters don’t mind driving the couple around town while they are making out or having sex in the back seat. Someone I know (in his 20s) told me this as he’s a cab driver and he has done it (carried such passengers).
So, if you charge your passengers unfairly, of course you can make as much as you want. You control your income. Someone mentioned you are boss of your own and control your working hours. That’s true, however, it is really a tough to do it. Sometimes you have to force yourself to go to work because as human, we tend to rest more than we want to work. With taxi, you don’t get any paid sick days or vacation time. If you don’t go to work, you don’t make money.
My dad has fixed working hours. On the other hand I know some people who would work as much as as they can. Then once they get tired, the come home and sleep for 4-6 hours. Get up and run back to work. Mostly singles from Pakistan or people who don’t have families living here with them do that. In old age, you can’t do this.
Now coming to expenses:
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Gas - If you are honest, doesn’t matter whether the gas price is high or low, the fares will not change as fast as the gas prices because the fares are controlled by the taxi authority. Of course there are people who charge whatever they want, but most of them are honest. There are days when most people just keep driving around for passenger and can’t find any. They burn all that gas and come home with $30-$50 dollars after working for 8-9 hours. So when you think of $300 per shift, do think of $50 shifts as well.
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Insurance - As taxi is a commercial vehicle, it’s a big liability. The insurance can cost you about $5,000 - $6,000 per year. That’s LIABILITY ONLY! If you get into an accident and your car is totaled, the insurance will give you** NOTHING **as it is liability only. They won’t insure you for full. They will only pay the OTHER car for their damage and to passengers. So do keep the high insurance price and buying a new car in case of an accident in mind.
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Number - If you notice, each taxi has a number written on it. That number can cost anything from $50,000 - $100,000. Most people can’t afford it, so they rent it. The rental is about $500 - 600 per **WEEK. **Since the number is rented by individuals to individuals, rates are not regulated.
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**Medical - **When they have to go visit the doctor, there is no company paid medical that’s going to cover them. They have to pay for EVERYTHING - from doctor’s visits to medicines.
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401K - Again, nobody is matching their 401K. What they save now will come in handy down the road.
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Maintenance - Since taxi is driven more than private vehicles, more maintenance is required. More frequent oil changes, tire changes, AC breaks down, Transmission problems, and many other unpredictable mishaps and they all can add up.
Taxes
So obviously if they make “a lot”, a lot of that goes towards the expenses, and mind you, most of them are valid expenses. Of course there are exceptions like those who charge unfairly. Same people would report less income and high expenses but you have to keep the majority of honest people in mind. Those who end up paying a little bit of taxes, they pay them at once, rather than taken them out of their paycheck unlike most of us.
Other things to keep in mind.
So far there’s good money and major expenses. In addition, it’s a physical labor job. You have to open the door for passengers, put their heavy luggage in the car, get it out for them etc. But hey, it’s their job.
Sometimes drunk people also ride the cab. You can’t tell them no. So they drink, have fun, vomit in the cab. You end up cleaning their mess.
Sometimes people sit in the cab and have no money and you don’t know until you reach their destination and they want to walk away without giving any money. Sometimes fights take place because of this.
I know a few of the cab drivers who were shot by passengers just so they don’t have to pay the fare. Sometimes they are robbed of whatever they have made so far that day. Sometimes they are beaten up because they are Pakistanis/Indians.
Social life is not that great. Other “well educated” Pakistani thinks of themselves holier than cab drivers, so they don’t like to associate with them. That limits their circle of friends with other cab drivers.
I can go on and on on but the bottom line is that those people work their asses of. It’s not an easy job, in fact, it’s **A LOT HARDER THAN **my job where I get up in the morning, go to the office, sit in front of the computer all day (weather outside doesn’t affect me), and then leave at 5. On top, I get 3 weeks of paid vacation, sick and personal time, matched 401K, medical, dental, and vision benefits.
If they own the house, expensive brands, cars, or whatever, they earned it and they worked very hard for it by putting their lives in danger, literally, for their families.
i should start driving a Cab 
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