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. Usually someone who works for a taxi company will either own their car or lease one from the company they work for. However, the leasing option is generally the more common of the two.
So why is it beneficial for the drivers and the company to offer a leasing option instead of all drivers having their own taxis? The number one reason is that it would be very difficult for most taxi companies to get enough drivers if they only allowed the people who own their vehicles to work for their company. Purchasing a car expressly for business purposes is a very large investment, and many newcomers in the industry would not have the desire or the financial resources to make such an investment.
Driving a taxi, like many other careers, is one that may not be for everyone. Many people try it for a few years, or even a short period of time, and decide they don’t like it. Dealing with strangers all day, having to drive intoxicated people after bars close, and the threat of possible muggings often tend to drive people away from the profession. They may not realize that they will feel this way until they have tried it for a while, so the vehicle leasing option is preferable.
On the other hand, someone might start driving a taxi and find that they love it. For these people, then it makes more sense to invest in their own car. Once they realize that this is a lifetime career for them, they can increase their profit margins by owning their own car rather than leasing it. Although most taxi companies rent their vehicles, many will have a plan that will allow drivers to also have their own car if that is how they prefer to do business.
Even if you own your own car, you will have to rent some equipment from the company you work for. Things like a radio and a meter are often owned by the taxi company itself. If you want to work for them, they will generally charge you a small fee to rent the necessary equipment to install it in your own vehicle.