04/27/2026
This came from a friend in the business and it is spot on.
So I have be reading different sites about transportation companies and clients responses are " it should cost no more than $70.00 "
I would love for someone to show me the breakdown of how that is possible because if you’re a legitimate transportation company who is legally licensed, bonded, and insured there is NO WAY this is possible.
Let me break it down to give you an idea of what a REAL company pays.
1. License plates
Our plate fees range from $150 to $300. We are required to have special plates that end in “LY”, “PT”, and “TX” this identifies that we are in compliance with safety, insurance, and municipal licensing. The only time passenger plates are allowed if you have booked through the app for Uber/Lyft. If anyone tells you otherwise, THEY ARE LYING! And you are not covered by insurance.
2. Insurance –
Legally to transport passengers you are required to carry commercial insurance through a commercial broker (State Farm and your personal car insurance company is not a broker) they offer rideshare gap protection for Uber and Lyft drivers ONLY and that only works if they pick you up via the app. How do you know if the Limo/Taxi have the proper insurance? There is a mandatory insurance sticker located on the windshield on the passenger side. Price is between $2,500 - $5,000 annually based on type of vehicle and carries a $1 million dollar policy or higher. If you don't see this sticker, YOU ARE RIDING AT YOUR OWN RISK. Their personal insurance will not cover you in an accident if you are a paying customer. (If you are one of these drivers, read the fine print of your policy- don't trust your agent. they are just trying to make a buck and/or are misinformed)
3. Airport taxes
Every time we pick a client up- we are required to use the dedicated center lanes on the lower level for commercial vehicles. If you didn’t order off the Uber/Lyft app then your driver has no right to pick you up in the Uber/Lyft area upstairs or any other area and these vehicles are considered “illegal’ and if caught the city will arrest the driver and tow the vehicle. They have begun their spring crackdown and you will be looking for a new ride. Drivers have a white MPEA sticker in the driver side front windshield showing they pay this tax. We pay $3.50-$32.00 every time we pick someone up at the airport depending which vehicle is used. This averages to $120 per day.
4. City usage tax
For every vehicle we own and every day we use it we have to pay the city of Chicago a highway usage fee. This fee again is dependent of the type of vehicle used and can range from $3.50 - $5.00 per day. This can be calculated from the airport tax fee. This is about $600.00 per month
5. Credit card fees
Just because you pay us, we don’t get the whole amount. Credit card fees are between 2.5% and 5% based on the type of card you use. We pay an average of $1500 per month in credit card fees.
5. Maintenance
This is the money drainer. Imagine 1 vehicle driving to the airport 5xs in 1-day, round trip, for an entire week. That said, you are looking at approximately 3,500 miles per week per vehicle. That means we need the high mileage synthetic oil change every 2 weeks = $101.00, tires every 6 months, = $1500 (cannot be Walmart tires either because they must meet commercial specifications) wiper blades every 3 months $50.00, and you know something is going to break eventually so be prepared to spend $2,000 - $5,000 to fix it or purchase another vehicle. Now multiply this by 7 vehicles.
6. Safety inspection
Real commercial vehicles are required to be inspected by the department of transportation every 6 months-1 year to insure they are driving safe vehicles. This sticker is in the driver side windshield showing the month/year due for the next inspection. This inspection is between $30- $50 every 6 months-1 Year
7. Payroll
So, there are 3 parts to this. The driver, the vehicle, the office and all 3 need to be paid. Let’s assume you paid $70.00 for your ride. And have to divide this 3 ways? Could you live on this? Gas alone eats up a lot of this. We work on a 3-5% profit margin.
8. Conclusion
This was for educational reading. Thank you for your time. In the end we are just trying to do things the right and legal way. Safety in our #1 priority along with customer satisfaction. There are to many “fly-by-night” companies trying to represent themselves on the internet and Facebook as a transportation company. We have listed the red flags, if they are not in compliance, I wouldn’t get in the car with them. But that’s just me, my life is worth more than $70.00
