Taxi business is not as profitable in Anchorage, Alaska as it was 10 years ago. Anchorage municipality has hired 10 new driver every year for the past 10 years. There is a huge surplus of Taxi drivers in the business. I have a friend who is going through the struggle of owning a taxi medallion. The way the money is made reminds me of some type of gambling system. He is required to pay 80.00 $ every day before money is even made.I don't think I would enjoy running a business where I woke up 'in the red' (in debt, owing money) before I even start to turn a profit. In order for him to maximize on his investment, he rents his cab to another driver. This means that the vehicle is on the road for nearly 72 hours at a time with extremely brief intervals. That can run into some heavier expenses later. And if the for-mentioned wasn't enough, its currently over 150k just to have a taxi medallion in the city of Anchorage.
With all of the alternatives out there such as : phone apps, bus systems, trains, the shoelace express,etc, There is still a demand for taxis. I foresee the market leveling itself out. If everyone remains stubborn and tries to obtain employment then the profits will be low, kind of like they are now. But hopefully people will lose the incentive and then those who remain can make a decent wage. people who own a medallion do have an advantage. they can rent it out and that gives them leisure time, and if not, at least the business is still operating.
Communities/municipalities hold too much power by granting entrepreneurs 'permission' (via permit) to make a living. People jump through hoops to get permits and licences. In return, there is high risk and generally low profits.
I would say that due to the variables that create the price, its not really worth it.But we do live in a service economy and tips are probably appreciated! The article was interesting and seemed pretty true to life with experiences that I have watched people encounter.