Taxicabs have become an integral part of our lives. For people who don’t own a car or can’t drive one, taxis are a life source. Driving a taxi, no matter where, is essentially a service business. If you have always wondered how much taxicab drivers make, then you must know that it depends on a few factors. Cab owners have two sources of income, the first being the basic fare and the second being tips. The first one is decided by the municipal organization of the city where the cab driver works at and the second depends a lot on the drivers themselves.

Cab driver salaries cannot be pinpointed easily because the truth is that no two cab owners make the same amount. Of course, like every other profession, there is an average, but it is up to the cab owner himself how much he makes for himself. Cab driver salaries can actually range from as little as, or less than, $100 per shift to more than $350 per shift! This is the net earnings, after all the expenses the taxicab driver meets and before he pays taxes. There are a lot of things that make such a huge difference in cab driver salaries. Following are the most important points that are responsible:

  • Total time worked per shift
  • Total expenses incurred on gasoline
  • Total time spent cruising for new customers
  • Locality
  • Skill or talent
  • Endurance
  • Luck
  • Tips

As with all other professions, taxicab drivers also develop tricks of the taxi driving trade to earn as much as he can in as little time as possible. Though a New York or London taxicab driver may earn more than someone who is in a smaller city or town, it is possible to increase the income by giving more to the customers.

Tips are the 2nd largest source of revenue, after the basic fare of a cab driver’s salary. Most countries have the custom of tipping taxicab drivers. Some tip very well while some don’t tip at all. A lot depends on the individual customer. But in New York and most cities, cab owners can expect to be tipped most of the time. In fact, as much as 40% of a taxicab owner’s income can come from the tips he receives. It is also a truth agreed by most cab owners that better service leads to better tips. So cab driver’s salary can increase considerably if he provides better service. Little things as keeping the cab clean and tidy and the driver himself dressing nicely also increase the amount in tips.

In surveys done on cab driver’s salaries, the average came to about $10, including tips, for every hour. 50% of cab owners earned between $7.61 and $11.94 an hour and the lowest 10% of taxicab drivers earned less than $6.43. The highest earning drivers earned more than $15.62 per hour. These are average figures of cab driver’s salaries and can vary greatly depending on the cab owner himself.