Taxi Service Revenue Benchmarks
The average taxi service business in the United States generates $4.1M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 2,994 taxi service businesses in the U.S., employing 26,803 workers with an average profit margin of 5.0%. The average employee in this industry earns $110K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Taxi Service Business Actually Do?
Traditional taxi services — hailing on street or dispatched. Displaced by ride-hail apps but still active in airports and dense metros.
Who buys: Airport travelers, tourists, elderly non-app users, corporate accounts.
Average Revenue
$4.1M
per year
Profit Margin
5.0%
industry average
Revenue / Employee
$458K
per year
Total Businesses
2,994
in the US
Est. Owner Income
$205K
small business avg
Labor Cost
35.0%
of revenue
Avg Employee Wage
$110K
per year (BLS)
Market Saturation
0.9
firms per 100K people
How Much Do Taxi Service Charge?
Taxi services charge base fare + per-mile + per-minute. Ride-hail (Uber/Lyft) largely displaced traditional taxi.
| Service | Typical range |
|---|---|
Base fare (major city) | $3–5 |
Per-mile rate | $2.50–4.50/mile |
Per-minute wait rate | $0.40–0.80/min |
Airport flat rate (typical) | $35–75 |
Driver earnings after commission | 60–80% of fare |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete taxi service business plan
A 12-section data-backed business plan for a taxi service business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the taxi service industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Fuel & vehicle costs | $30 | $1.2M | Fuel is often the single biggest line — plus tires, maintenance, tolls. |
Wages & benefits | $35 | $1.4M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $246K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $123K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $21 | $860K | Insurance (very high), truck payments, dispatching software, driver benefits. |
Net profit | $5 | $205K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
23.52%
openings/year
Closure Rate
15.65%
closings/year
Net Job Growth
+8.88%
annual
Businesses Closed
843
in 2023
Firm Count Trend
Should You Start a Taxi Service Business?
Startup Cost
$50K – $250K
Break-Even
9 months
5-Year Survival Rate
50.0%
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Frequently Asked Questions
- What does a taxi service business do?
- Traditional taxi services — hailing on street or dispatched. Displaced by ride-hail apps but still active in airports and dense metros. Airport travelers, tourists, elderly non-app users, corporate accounts.
- How much do taxi service charge?
- Taxi services charge base fare + per-mile + per-minute. Ride-hail (Uber/Lyft) largely displaced traditional taxi. See the pricing table above for typical rates by service type.
- How much does the average taxi service make per year?
- The average taxi service business generates $4.1M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $205K per year at a 5.0% profit margin.
- How many taxi service businesses are there in the US?
- There are 2,994 taxi service businesses operating in the United States, employing a total of 26,803 workers.
- How much does it cost to start a taxi service business?
- Startup costs for a taxi service business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the taxi service industry?
- The average employee in the taxi service industry earns $110K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The taxi service industry is actively growing — adding jobs at a net rate of 8.9% per year. New establishments are opening faster than existing ones close (23.5% entry vs 15.6% exit), indicating healthy demand.
Approximately 43% of taxi service businesses survive their first 5 years. This is below the national average (~50%) — new entrants face elevated risk of failure. Ensure adequate capitalization. In 2023, 843 firms in this industry closed permanently.
Employment & Wages
The average employee in the taxi service industry earns $109,845/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 3,092 establishments employing 40,498 people, the typical business has about 13 employees.
Industry Trend (2000–2023)
The taxi service industry has grown 6% since 2000 (from 5,809 to 6,136 firms).
See full historical statistics →Compare Taxi Service revenue with other industries: