Taxicabs of the United States vary by jurisdiction. Companies may be independently owned small businesses with only one driver or have fleets of 100 or more vehicles. Drivers are rarely employees of the company, and usually lease the vehicle on a per-shift basis. They can also be owned by separately-incorporated small businesses that subscribe to a dispatch service. The owner/driver will pay a monthly fee to the company; purchase and maintain his own vehicle, and may in turn lease shifts to other drivers. Ridesharing companies are major competitors to taxi companies, providing vehicle for hires via mobile apps in many US cities.

Statistics As of 2024, the total number of taxi drivers, including shuttle drivers, and chauffeurs, in the United States was 393,400; the average annual salary was $36,660 or $17.62 per hour and the expected percent job increase over the next 10 years was 11%.

Medallions

Some cities use "taxi medallions" as permits for taxicab drivers to pick up passengers. Because the medallion system is a government-created intentional constraint on the supply of taxicabs, and historically cities have increased the number of medallions much more slowly than the growth in demand for taxis, medallions have generally been considered a great investment; though recently the increased supply of cars for hire created by ridesharing companies has been eroding the value of medallions.

In New York City and other cities, a "medallion" is required in order to legally pick up passengers flagging on the street. In Saint Augustine Florida medallions sell for just $50.00 and the city requires yearly car inspections. Medallions, or CPNC (Certificate of Public Necessity and Convenience), may also be sold in Boston, or Chicago, but in San Francisco—one of the few other cities that has medallions—the sale of medallions became prohibited by Prop K in 1978. This proposition was adopted to stop speculators from driving the price of medallions up beyond the reach of the people who provide the service—the drivers. In 2010, the City of San Francisco attempted to allow the sale of medallions (for an estimated $250,000 each) in order to balance the City budget.

According to The Washington Post, medallions were "the best investment in America", but, due to increased competition from mobile app-based vehicle for hire companies, taxi medallions are now decreasing in price.

Operations Some taxicab companies are independently owned small businesses with only one taxicab and driver, but many cab companies have fleets of 100 or more taxicabs. Drivers are rarely employees of the company, and usually lease the taxicab on a per-shift basis. Lease drivers receive no benefits from the taxicab company, and often have to bribe dispatchers to get a shift. However, in some cases, cabs can also be owned by separately-incorporated small businesses that subscribe to a dispatch service, in which case the company logo on the door is that of the dispatch association. The owner/driver will pay a monthly fee to the taxicab company; purchase and maintain his own vehicle; and may in turn lease shifts to other drivers.

A suburban taxi company may operate under several different names serving several adjacent towns. They often provide different phone numbers for each fleet, but they usually all ring into a central dispatch office. They may have subsidiary taxi businesses holding licences in each town. Taxi companies also may run multiple businesses, such as non-taxi car services, delivery services, and school buses, for additional revenue, as the infrastructure required for maintaining, operating and dispatching the fleet can be shared.

Safety In 2008, taxi driving was considered one of the top 10 most dangerous jobs in the U.S., with a 2008 fatality rate of 19.3 per 100,000 workers. Beyond the inherent dangers of taxi driving, the perceptions and attitudes of taxi drivers towards their occupation can significantly impact driving safety.

Snubbing Snubbing is getting refused or passed up by a taxicab, which is against the rules in New York.

New Orleans In January 2007, a taxi driver, Monier Gindy, was murdered. A local teenager was convicted of the crime 10 months later.

Taxi rates in New Orleans increased by $1 in 2008.

In June 2015, the city council voted unanimously to increase taxi fares for the first time in six years.

Boston

The City of Boston (Massachusetts)'s Police Department issues Hackney Carriage (Taxi) Licenses. The BPD Hackney Carriage Unit handles the regulation of the city's 1,825 medallion-taxis.

To become one of the city's roughly 7,000 licensed Boston Hackney Carriage Drivers one must report to the Hackney Carriage Unit at Police Headquarters, located next to the Ruggles T station on the Orange Line. The applicant must produce documentation of legally eligible to work in the United States and must have had a Massachusetts driver's license for a minimum of one year. In addition, Hackney Officers will run a Criminal Records and Massachusetts Registry of Motor Vehicles check on the applicant.

According to an April 2011 study by the Chicago Dispatcher, a Chicago taxi industry monthly newspaper, Boston has one of the highest standard cab fares in the country, charging an estimated $18.53 for a distance of five miles with five minutes wait time (compared to an estimated $14.57 in Philadelphia and $14.10 in New York City).

Due to the different rates set by each city's taxi regulators, renting a taxi for a 12-hour shift in Boston can also be more expensive than in New York City. Using figures from the New York Taxi & Limousine Commission and the Boston Police Department's Hackney Carriage Unit, actual rates for the Chicago newspaper's hypothetical five-mile trip with five minutes wait time in Boston is $18.60. In New York, the same trip can cost either $15, $15.50 or $16, depending on time of day, due to varying surcharges and the fifty-cents NY State Sales tax added to each fare.

In virtually all industries the law of supply and demand affects prices charged to consumers, whether for goods or services. In the case of taxi service, the lower the number of residents and tourists in a city, the higher taxi fare rates are likely to be because of lower usage. New York City, the largest city in the United States, can easily afford to have lower taxi fares. The city's more than 12 million residents and 8.25 million visitors have created a vibrant non-stop city in which taxicabs find it difficult to stay empty for very long. The greatest number of taxi trips typically run less than three miles, which is where cabdrivers make the most money, due to the $3.50 "flag drop" (initial dollar-amount when the meter is started) at some of the busiest hours of the day.

Due to a combination of its age, its early Puritan roots and a large college student demographic, Boston's mass transit closes up at 1:00am for four hours of maintenance and drinking establishments are shuttered by 2:00am.

Chicago

Taxicabs in Chicago, Illinois, are operated by private companies and licensed by the city. There are about seven thousand licensed cabs operating within the city limits. Licenses are obtained through the purchase or lease of a taxi medallion which is then affixed to the top right hood of the car.

Each medallion carries a numeric code, which is also displayed prominently at several locations on (and in) the taxicab. The medallion must be purchased from the city or from another medallion owner. The supply of medallions is strictly controlled to prevent a surplus of cabs, which means that medallions trade at a high price. Unlike other cities, Chicago taxis can be of any color and drivers are not required to wear uniforms.

Flagging a taxi down is fairly easy throughout most city neighborhoods, but can often be more difficult in areas where there is low demand for cabs. Drivers are required to pick up the first or closest passenger they see, and may not refuse a fare anywhere within the city.

The passenger is required to pay the amount on the taximeter plus any additional tolls or fees. The initial entry, sometimes called a "meter drop" or "flag pull", is $3.25 regardless of distance traveled. Each additional fraction of a mile charge is $.20 for each additional 1/9 of a mile. Additionally, each 36 seconds of time elapsed, known as "wait time", is $.20. This charge is in place to ensure the driver still makes money if the cab is stuck in bad traffic. There is a flat fee of $1.00 for the first additional passenger and another $.50 for each additional passenger after that unless the passenger is under 12 or over 65 years of age.

An additional charge of $4.00 is added to the total fare on each trip from O'Hare or Midway airports under the State of Illinois Metropolitan Pier and Exposition Authority (MPEA) Airport Departure Ordinance. The tax should appear on the meter as an "extra" charge. There is a $0.50 additional charge for credit card use, and tipping is optional but encouraged at the rate of 10% of the total taximeter fare.

City of Chicago taxicabs must accept credit cards, unless the taxicab is independently owned and operated – that is, the cab does not belong to an affiliation. One can tell that a cab belongs to an affiliation from the logo on the outside door of the cab. Another way to tell if the taxicab that one is riding in is an independently owned taxicab – and therefore not subject to the requirement to accept credit cards – is whether the taxicab has a "partition" between the passenger compartment and the driver. Partitions are mandated for all taxicabs, except independently owned and operated taxicabs. The enforcement of, and compliance with, the partition rule has an inconsistent history in Chicago. A partition is no longer required, however, if a cab has a closed-circuit television.

Partition 'use requirements' have resulted in partition-impact injuries and deaths in collisions, just as in other cities like New York and Boston.

Below are some estimated cab fares from State and Madison, the downtown zero point. State and Madison to O'Hare Airport: $38 – $45. State and Madison to Midway Airport: $27 – $32. State and Madison to the United Center: $10– $12.

A study conducted in April 2011 by the Chicago Dispatcher revealed that Chicago has one of the lowest standard cab fare rates in country, despite higher gas prices in the city. Cabs in Chicago charge an estimated $12.72 for a distance of five miles and five minutes wait time, lower than an estimated $14.10 in New York and $18.48 in Los Angeles.

Rates from Chicago, excluding O'Hare and Midway Airports, are straight meter to the city limits plus meter and one-half from the city limits to the destination.

Straight meter fares apply to all trips departing from Midway or O'Hare airports to the following suburbs. (All other trips are metered at one and one half the rate from Chicago's city limits to the suburbs.) AlsipBedford ParkBlue IslandBurnhamCalumet CityCalumet ParkCiceroDes PlainesDoltonElk GroveElmwood ParkEvanstonEvergreen ParkForest ViewHarwood HeightsHines HospitalHometownLincolnwoodMerrionette ParkNilesNorridgeOak LawnOak ParkPark RidgeRiverdaleRiver GroveRosemontStickneySummit

Dallas

The Dallas, Texas, metropolitan area taxi industry consists of approximately 1,500 taxicabs that are operated by eight taxi companies. They are Dallas Yellow Cab, Cowboy Cab, Golden Cab, Executive Cab, Starcab, Alamo Cab, Taxi Dallas, and Ambassador Cab. Of the eight, Dallas Yellow Cab is the largest with approximately 1,000 taxicabs. Dallas Yellow Cab taxis are easily identified by their uniform yellow color. The other taxi companies’ vehicles are painted a variety of colors including blue (Alamo Cab), black/silver (Executive Cab), grey/white (Cowboy Cab) and burgundy (Starcab).