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If you've never worked in the taxi services, you probably do not know how these companies structure their agreements with their employees when it comes to the cars that the employees drive. This issue can even get more complicated when you realize that at times, a cab company may either rent a cab to an employee, or they may allow the employee to own their own. However, in most situations, rental is the more common business model for a cab company to follow.
Rent is indeed not exactly the right term. What happens in truth is that taxi companies lease the cars to their drivers. This for many reasons has proven to be the best way to run this kind of operation. A large reason why this looks to work better is because of the commitment involved in owning a vehicle solely for work. Very few people might have become interested in driving cab as a profession if buying a new car were a prerequisite out of the gate.
The lease agreements that cab companies have with their drivers are very convenient though. That is because they include in the lease all of the necessary equipment that is required to run the cab as a business. This means that there are several other things packaged with the lease in addition to the cab itself. Certainly, a meter will be included, as will in most cases a machine for processing credit or debit card payments. A radio is also usually included, and a GPS is becoming a more and more common addition to the package deal as well.
Because the drivers lease the cabs though, they are responsible for them. This means that as a condition of their employment and their lease they are required for maintaining the car, and for keeping it in a reasonable state of cleanliness, as one of the things cab passengers have the right to is a clean ride at all times.
There are some companies out there which will hire drivers that own their own cabs, provided the vehicle in question falls within their accepted make and model guidelines. This is something that some drivers decide to do after being in the business for many years, as they know they are going to stick with the profession and see a greater potential for profit with a greater financial investment in their business. Some companies also offer an option to purchase at the expiration of an initial lease.
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