The Taxi Industry is Making Billions Every Year: Here’s Why

Look, this may sound absurd, but there are some trips you just can’t go with your car.

A good example is when catching a plane. Driving to the airport might seem like a great idea at first, but wait till you get to the parking lot only to find all the spots taken. All hell breaks loose.

Of course, you can always reserve a parking space in or around the airport, but those slots fill up fast leaving you with little options.

So taking a taxi remains to be the most sensible option. And here’s why. You won’t need to pay parking fees or risk missing the flight while looking for parking space.

Of course, there are more situations where taxis save the day, but this example stands out. So here is a list of benefits of using cab services.

Taxis are Convenient

Most taxi companies operate for 24hrs every day. And the best part is, the ride comes with a professional driver. These people are typically very knowledgeable about traffic patterns and routes.

So whether you have an emergency, dealing with car trouble or avoiding recurring parking fees, taking a cab is your best bet.

Door-to-door Service

Another great thing about cabs is that they pick clients from their exact location and drop them off at their destinations. Plus, they arrive in a couple of minutes after placing the order – thanks to intelligent applications that automagically match clients to the nearest taxi available. That eliminates all the hustle involved with the public transport system.

<h2>A Taste of Luxury

Everybody wants to live the good life. Own a mansion on the hills and have several luxury cars in the garage. That, however, remains to be a dream to many unless they decide to hire these luxury toys and properties.

A Limo, for example, is perfect for weddings and corporate events. But you won’t enjoy having it as your everyday car. And taxi companies know this. For this reason, they buy limos and other luxury cars to put them up for hire at surprisingly low prices.

Arrive Safely in a Cab

Cab companies are known to have stringent requirements for their drivers. Some consider driving experience while others go further to check if the applicants have criminal records. So overall, you are assured of a safe ride every time you call a cab.

Here’s The Four-Part Recipe to Becoming an Uber Partner

It’s no covert that Uber and Lyft have shaken up the entire taxi industry, as their business model exploits a regulatory loophole. These two multi-billion businesses say they are rideshare services, not taxis. And that exempts them from taxi regulations. Pretty sleek, right?

The good news is, they are continually looking for partners. In fact, it’s now easier, more than ever, to pick up fairs in your city minus all the stress that comes with marketing. Take Uber partnership for example. All need to do is complete this 4 step verification process to turn your ride into a cabbie.

Meeting Uber’s Requirements

For you to become part of the Uber revolution, there are several requirements you need to meet. The first one being car standards. The vehicle should be ten years or newer, pass Uber inspection, and have all the necessary government registrations.

The driver should be over 21 years and have least three years worth of driving experience.

Seek Approval

Signing up is the easy part, just fill out a form on their site. Then attach photos of your car to accompany this personal info. However, Uber reserves the right to schedule an inspection or reject the application.

Meet Service Requirements

This ridesharing company requires you to choose a service plan depending on the type of vehicle and your preferences. Options range from UberLux for high-end cars to UberX as the basic service.

Start Driving

After meeting all the requirements, it is time to create a schedule and start turning As to Bs. Though this might not be a good full-time job, the extra cash will do you good.

Taxis vs. Uber: Who Wins?

Traditionally, investing in a taxi medallion was the most preferred investment for many Americans. Some even put in all they had thinking nothing would ever shake up this multi-billion industry.

But as it turns out, these investors were wrong. Uber, a ridesharing service, is on the verge of bringing down the cabbie business. Their solution can turn any car to a taxi and provide quick, metered and affordable transport for clients.

Traditional taxis, on the other hand, are heavily regulated. The law requires them to be painted yellow, have cameras on the rear-view mirror, display a fare structure, and have a card reader. Uber drivers need a well-maintained car, GPS, and an app – that’s it.

When it comes to pricing, Uber win hands down. They have an 80:20 revenue sharing model where the rider takes 80% and Uber remains with 20%. And that is pretty fair. But the real reason the start-up is so popular is the fact that they charge slightly less than taxis.

Overall, taxis seem to be losing this battle. Uber is only five years old, and they have an estimated net worth of $40 billion. However, some states and countries have stopped the ridesharing service from operating in their cities. But that can’t last for long.

You’ll be Surprised at How Many Legal Battles Uber has Faced

Most young people prefer ridesharing services to traditional taxis – for a good reason. They are convenient, affordable and downright innovative.

However, not everyone shares that sentiment. Some jurisdictions just can’t see sense in crippling an entire industry to please riders or service providers. They prefer replicating the innovation and using it with the cabbies on the ground.

So here are some places where Uber has been banned or has voluntarily walked away after legal battle.

Three US States

Austin – as ironic as it might seem, Uber is facing legal action in over 20 states. The most notable one being Austin, Texas where the company decided to pull out after a juristic disagreement in 2016.

Alaska – this state also had a problem with Uber’s business model, and that lead to a courtroom battle that ended in Uber paying $77,925 in fines. The company later exited the market altogether.

Oregon – this west coast state also slapped a ban on ridesharing services, but with an exception for Portland.

Four Countries in Europe

Bulgaria – Uber has also faced legal issues in Europe, with Bulgaria being the most visible case. The Supreme court of Bulgaria ordered the shutdown of Uber, citing that anyone looking to provide taxi services in that country should take on all the requirements.

Denmark also made taxi meters mandatory for all cabbies operating within her borders. And that saw the exit of Uber from that market.

London – The latest ban on ridesharing services was in London. The court claimed that Uber is not “fit and proper” for their market. But the start-up has vowed to fight back claiming that more than 40,000 Londerners depend on their services.

Newyork Wants to Boot Out Ridesharing Services

Newyork’s current taxi medallion system is failing. Driver-owners can barely meet lease agreements, and the price of medallions is teetering.

The entry of Uber, Lyft and other ridesharing services in Newyork come as a relief to aspiring cab owners and riders. But the city’s taxi industry is taking non of that. They recently engaged this free cabbie market in stormy legal battles.

Of course, the politically affiliated medallion owners got the upper hand. Alluding that everything was okay since 1930 until the ridesharing services arrived. Now, the value of this treasured medallions is plummeting.

There are roughly 13,000 taxi medallions in NewYork, and for a long time, they sold at $1 million and even more. Today, the same medallions are worth less than $200,000. And that has left many owners with steep loans which they cannot afford to service.

This inequity trickles down to riders too and that, in a way, fuels the cycle of debt. However, this problem is not going away soon. The city is tightening taxi regulation again, in an attempt to make a recap after almost running out of business.

These 4 Cars Have Got the Entire Taxi Industry Drooling

Cabbies have been turning cold hard cash to expenses for ages now – thanks to the evolving automobile industry.

Some places, like Mexico City, still allow classics such as the VW Beetle to pick up fairs. Mosco, on the other hand, boasts of having a fleet of yellow Porche cabbies. That’s fine. But these two examples, are not the most convenient cars for the taxi business.

Whether you are looking to join a taxi company or fly solo, here are some of the most cabbie friendly autos today.

Sodka Superb

Superb’s new sleek design, fuel efficiency, and generous legroom make it

perfect for the taxi business. It comes in two flavors: a hatchback with plenty of room for luggage and the sedan that looks better than its counterpart.

The reason why taxi companies love this car is probably the fact that it’s affordable. Plus, it has enough space in the back seat to accommodate three six-foot men.

Mercedes Benz V-Class

You can think of this luxury MPV as a replacement of the aging Viano. The Mercedes Benz V-Class comes with an executive, plush and stylish look. That makes it ideal for people who intend to ferry groups or transport valuable stuff.

Citroen Berlingo Multispace

This MVP might not be the most modish family car out there. But it’s a perfect match for people looking for practical, low maintenance and good value car for their cabbie business. The auto features seven seats and impressive performance.

Toyota Prius

This hatchback from Toyota may not have the most attractive looks, but it has caught the attention of the taxi industry. Its hybrid engine makes it economical. And the car’s reliability scale is way above other vehicles in its class.