The taxi industry is a transportation service that transports passengers and their luggage to and from predetermined locations. Taxis can be hired through a dispatcher or hailed on the street. The taxi industry is regulated by each state, and there are specific regulations for licensing, safety, and insurance.
Taxi drivers must have a special license to operate a taxi. In order to get a license, the driver must pass a criminal background check, have a clean driving record, and be insured. Taxi drivers are also required to complete training in customer service and safety. The taxis themselves must undergo rigorous safety inspections every year. They are required to have working seat belts, fire extinguishers, and first-aid kits. All taxis must also be equipped with meters that display the fare.
In most states, taxi companies are required to carry commercial liability insurance.