Taxi-cab drivers are not sub-contractors. We are self-employed. Because of government and company Monopolies, we have to lease taxi-cab medallions from taxi-cab companies or medallion owners in order to serve the public. We pay additional money if we need dispatching services and insurance from those companies.
If we are a medallion owner, we join those companies in order to get low cost insurance, dispatching services and to be part of a larger team. We should not have to pay for those services from those institutions, if we feel that they are not important.
The majority of non-medallion owners prefer to get a full package which includes the vehicle, medallion, insurance and dispatching services so that they will not pay for vehicle maintenance, as those vehicles usually reach more than 300,000 miles. Every week when the driver pays his/her lease, a mechanic checks oil, transmission and solves any mechanical problem, including body work; and performs painting work at the expense of the company‘s garage.
It is like you having a small retail corporation that sells construction goods. Because you do not have enough capital, you lease from U-Haul a truck or a van with a crane and GPS (global positioning system) in order to deliver goods to your customers, as well as to pick up your merchandise at the seaport, airport, or a warehouse and get your international goods at a broker warehouse.
No one ever gives taxi-cab drivers a 1099 form when they get a $600.00 fare or more at the end of the year as they do for subcontractors. We are in business for ourselves. We pay and hire companies to do dispatching services for us. If we do not like it, we can get that service from another company. The same scenario applies to vehicle insurance services if we are a medallion owner.
As a result, the word “subcontractor” does not fit for taxi-cab drivers. The driver can declare all his or her revenue under the roof of a corporation, partnership, or a sole proprietorship if he/she wishes. No one ever knows where the annual revenue is coming from unless you read a copy of his/her tax return.
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