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I owned a taxi company for a

I owned a taxi company for a number of years in another town but all city transportation laws are pretty much the same. Taxi companies have considerable expenses to pay. The NC Insurance rates for taxis are astronomical. Back in the 90's, the rates were $2600 per year per cab and that was just liability. If your vehicle was under loan, it was even more. There are permits, business licences, inspection fees. One of the biggest expenses is vehicle repair. Then of course, you must pay your drivers. The greatest expense is usually fuel. There is also the maintenace on the meters, dispatch fees, taxi stand rental, etc. None of these above listed expenses have decreased since the economy started tanking. In fact, most of them have increased. Yes, gas is down to a certain extent but it is a volatile commodity and turns on a dime. Another factor is that as the economy has worsened, there are less people riding in cabs due to job loss or not having as much disposable income with which to go out. Taxi driving is a business. They must make a profit like every other business or they will not stay in business. In most cities, the city council sets the taxi rates. And when they are raised or lowered, it also cost the taxi owner a fee to get the meter recalibrated to that price. It may take a days worth or more of fares just to realize enough of a profit to cover that fee. Hopefully this explains things somewhat. The next time you take a taxi, just remember that a huge chunk of the money you are handing over is going to cover expenses.

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