Types of Taxi Regulatory Systems in the United States

Large taxicab owners, drivers, and fleets are governed under extensive regulations in most large cities in America. The regulatory approach happens to a little lighter in smaller and mid-sized cities. The regulations are born through practical experiences and a way to regulate the abuses in the industry. The regulatory theories often differ among jurisdictions based on local circumstances and experiences.

Types of Taxi Regulatory Systems in the United States


Permits aka Medallions are metal ornaments affixed to the exterior of the car and are set through law or regulations. Permits or medallions are transferable and hold a certain value. This type of taxicab vehicle permits a system that exists in cities in New York City, Boston, San Diego, King County, Minneapolis, San Francisco, Miami-Dade, and Seattle. However, the permits in San Francisco are nontransferable.

Certificate System:

Under most systems, companies have to attain a certificate if they want to operate taxicabs. This is a little problematic, as not all vehicles can receive the certificate. Companies willing to get certified have to apply to the authorities. They will receive the certificate by the authorities based on various criteria. Examples of this system include Texas, Denver, Virginia, Fairfax & Arlington Countries, Alexandria, Austin, Pittsburgh, Pennsylvania, Colorado, and Missouri, etc.

Franchise System:

Franchises are issues to cab companies after a competitive process. Cab companies have to go through extensions and renewals after the completion of the term. The franchise decides upon the number of cabs each company can operate. The franchise system is in cities of Los Angeles, Anaheim, Dulles Airport and California.

Open Entry:

In this system, there is no limit in owning fleets of cabs. The system allows new companies and individual drivers to obtain authority, provided they earn the requisite qualifications. Regions that follow open entry includes New York City, Newark, New Jersey, D.C., Phoenix, Orange Country, Florida, California (not Anaheim), Washington, etc.

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