A taxi service invoice is a form given by a taxi company to a taxi driver that contains a list of expenses and fees due, which can include a vehicle lease payment, gas, and fare split. The invoice payment is normally due at the end of each week or the end of the month and is payable to the taxi service.
A taxi service is a company that has a license to operate a vehicle that can transport people to and from locations. The company has a fleet of vehicles that they lease to independent contractors, known as taxi drivers. Depending on the size and location of the taxi service (company), it may operate under two business models. See below for details.
- Fare Split – All money made from each ride is split between the taxi driver and the company.
- Vehicle Lease – The taxi services leases a vehicle to a taxi driver each month for a set amount. In return, the driver gets to keep 100% of the fares.
Taxi services are regulated by the transit authority within their district or location. Typically, large cities allow for higher fare prices, and rural areas allow lesser fare limits. The total amount due is based on three (3) factors, two of which are controlled, and the third factor is up to the customer, which is the tip amount.
- Drop Charge – A base charge that is automatically charged when entering the cab. This amount is usually between $2.00 and $5.00 dollars.
- Time and Distance – The constant ticking of the taxi meter is based on how far (per mile) the taxi travels and the time (per minute) it takes to get to the destination.
- How Much to Tip – With popular apps such as Uber and Lyft, taxi services are now viewed as being overly expensive compared to the cheaper alternatives. Unlike restaurants, taxis aren’t a service known for tipping. Expect tips of 5% when given.
Salary: $35,000 (source: Payscale)
Hourly Rate: $12/hr (source: Payscale)