S2306 - Taxi, rideshare and limo service

Industry code: S2306
Premium rate: 1.60

Classification Facts

Class: S - Service Industry
Rate Code: S23 - Hotels, Motels, Taxis

Description

Operational Details
Taxi cab businesses provide local individualized transportation using their own vehicles and through agreements with independent owner-operators. The independent owner operators own their vehicle, but carry the taxi company's colours and logos. The car owners or drivers pay a "stand fee" to the taxi company who arranges for taxi parking rights with airports, hotels, cities, towns and villages. They also provide dispatch, radio communication, and administration.
Cab operators collect payment directly from their passengers. A percentage or a fixed fee is paid to the cab company who owns the rights and provides services to the individual cab owners. In the case of company owned vehicles, the cab driver turns over the entire amount collected from the customers and the driver is paid either by the hour, trip or month.
Included in this classification is designated driver services. Designated driver services are similar to taxi services however there are two drivers dispatched to the customer’s location. One driver transports the customer while the other will follow behind driving the customer’s vehicle. Customer is charged per trip, often based on the distance travelled.
Ridesharing is a transportation service that uses an online platform that connects passengers with drivers for hire. The platform (app) allows passengers to set up an online profile, method of payment and request pick up/drop off destinations. Drivers get notification through the app and can accept or decline the ride. Once the ride is accepted, the driver will proceed to the pick-up location and transport the passenger to their requested destination. Fare payments are always generated in the app so there is no transfer of funds between the driver and the passenger. Rideshare drivers provide a vehicle, which could be owned, rented, or leased. Drivers receive payment through the app, either a percentage or on a per minute and mile basis and are often considered owner-operators.
A limousine is a large luxury vehicle driven by a chauffeur with a partition between the driver's compartment and the passenger's compartment. Limousine services are often used for special events as they can hold a large group of people. Some limousines are customized for entertainment and allow passengers to drink alcohol while in transit. The driver of the limo must be a valid holder of a "Class 4" license.

SIC Codes
000000823 - Taxi, Rideshare
000000811 - Limo service

Previous Codes

NAICS 2007
Code: 48531 - Taxi Service