Different taxi services decide to configure their driver and car systems differently based on a variety of factors. This could include the size of the business and the size of the area they serve. Typically, someone who works for a taxi company will either own their car or rent one from the company they work for. However, the lease option is generally the more common of the two.

So why is it beneficial for drivers and the company to offer a leasing option instead of all drivers owning their own cabs? The number one reason is that it would be very difficult for most taxi companies to get enough drivers if they would only allow the people who own their vehicles to work for their company. Buying a car expressly for work reasons is a very large investment, and many people starting out in the sector would not have the desire or the financial resources to make such an investment.

Taxi driving, like many other careers, may not be for everyone. Many people try it for a few years, or even for a short time, and decide they don’t like it. Dealing with strangers all day, having to drive drunk people after bars close, and the threat of possible muggings often tend to turn people away from the profession. They may not realize that they will feel that way until they have tried it for a while, so the car leasing option is preferable.

On the other hand, someone might start driving a cab and realize they love it. For these people, it makes more sense to invest in their own car. Once they realize that this is a career of a lifetime for them, they can increase their profit margins by owning their own car instead of leasing it. Although most taxi companies lease their vehicles, many will have a plan that allows drivers to own their own car if that is how they prefer to do business.

Even if you have your own car, you will have to rent certain equipment from the company you work for. Things like a radio and a meter are usually owned by the taxi company. If you want to work for them, they will usually charge you a small fee to rent the required equipment to install on your own vehicle.