Answering your questions: how should I compensate my drivers?

Dear Tom,

Been following your website and postings for a while now, and I am going to purchase your book. I run a taxi business just North of Toronto, and I was wondering if you have ad=ny advice or articles related to employee compensation…how should I compensate my drivers?

Please let me know, any advice is much appreciated!

Kind regards,

Jathu V

Short answer is:   percentage.  In my 7 years in this business I have never seen a successful taxi business owner who pays just a salary to his or her employees. You need to have your drivers and dispatchers interested in making more money. Your options are:- paying a percentage
– paying a base salary + percentage
– paying a salary masqueraded as percentage (i.e. you advertise that you pay salary, but in reality the salary is just a percentage that’s paid every 1st and 15th of the month. I have several VERY successful clients doing this).

This is the best answer I can give you without knowing the details of your business model (whether you own the cars or drivers own the cars, if the fares are pre-arranged or you get most of your business at taxi stands, etc.)

One Response to “Answering your questions: how should I compensate my drivers?”

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  1. David Bowden says:

    Only one company in my town pays this way and their drivers do very poorly. The rest of us charge the drivers to lease cars by the day or if the driver has his own car we charge him an weekly license fee. The drivers pay their own gas and keep whatever money they make that day after paying for the car.

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