How to Make Profits as a Cab Driver

Taxi drivers can make good profits, but the business is competitive.

For more than a century, cab drivers have been honking horns and cutting into traffic lanes to get their riders from Point A to Point B. In New York alone, adults living in Manhattan hail a cab an average of 100 times a year, according to studies by Bruce Schaller, a consult-turned-transportation-guru for the city. While people have a need to get around, many local governments establish set fares from key locations like airports, and regulate how the taxi meters run. So the real profits for cab drivers come in the tips received from satisfied customers.

Instructions

1. Know the traffic patterns and find the quickest way around. Customers generally are willing to tip for fast delivery to their destination. Avoiding construction areas and delays, which prevents the meter from increasing when the vehicle is stopped, which in turn prevents the passenger from becoming irritated. Heavy gridlock also can make you excited or angry, which may result in a negative experience for the customer and prevent you from acquiring any additional cash.

2. Offer advice and services within moderation. A casual, friendly conversation may lead you to give the customer a helpful scoop on quality accommodations, places to eat and sights to see. Out-of-town or foreign travelers may need the use of a cell phone, so offer the use of yours. A city map or other information also may be handy to give to the rider. All of these may encourage the customer to return the favor in the form of a tip upon payment of the fare, but be careful of seeming too pushy and overwhelming or alienating your customer.

3. Assist the passenger upon arrival at the destination. Cabbies always need to get to the next paying customer, but take a moment or two to remove luggage from the trunk or help a rider to the hotel concierge. Going the extra mile to serve the customer is meaningful and will be remembered when the time comes to settle the tab.

References

• Schaller Consulting: Archive --- Please Note
• Schaller Consulting; Factors of Production in a Regulated Industry: New York Taxi Drivers and the Price for Better Service; Bruce Schaller and Gorman Gilbert; 1995
• New York City Taxi & Limousine Commission: Passenger Information --- Frequently Asked Questions