The city of New York is facing a new problem in recent years: the decline in the number of New Yorkers using the world’s most iconic taxi service. The arrival of transportation apps like Lyft and Uber is making it a tough blow for workers in this sector, who are being replaced by other forms of transportation within the city. Although competition is becoming increasingly fierce, the sector remains the most chosen when it comes to needing transportation in busy areas like Midtown Manhattan or at airports such as JFK or LaGuardia.
Furthermore, the hourly wage for taxi drivers is $26.26 per hour in 2025, according to data from the job platform Indeed. This represents a 31% increase over the national average, which has brought to light the existing gap between the salaries of different districts and localities. According to Indeed, the highest salaries are found in Queens, Brooklyn, Manhattan, and the Bronx. Furthermore, data from the Bureau of Labor Statistics (BLS), which tracks employment, has indicated that New York ranks third in the nation for those looking to enter the sector. It is not just a matter of competition; factors such as hours, location, and passenger demand must also be considered.
Ride-hailing apps vs Taxis
Although it cannot yet be considered one of the greatest threats to the mobility sector, the taxi industry has been facing a highly changing landscape for years. Since 1907, Harry N. decided to introduce the first vehicles to compete with horse-drawn carriages, which were the main means of public transport in New York City.
The launch of that first fleet set a precedent and initiated the taxi service as it is known today in the city. What could never have been predicted back then was the emergence of ride-hailing apps like Uber and Lyft, which have become a real thorn in the side for conventional taxi drivers. What is the New Yorker choosing? It all depends on the time and the location, as areas like Midtown Manhattan or the airports remain exclusive territory for yellow cabs.
Is it profitable to be a taxi driver?
I would say yes, at least if we base it on the data. The average salary of a taxi driver in New York City is $26.26 per hour, which is 31% more than the rest of the nation. This data is reflected by the employment platform Indeed, which highlights the existing wage gap depending on the district and locality in which one is located. According to this platform, the hourly wages and locations are:
- Queens: $43.97.
- Brooklyn: $33.57.
- Manhattan: $26.26.
- Bronx: $21.89.
- Kingston: $18.59.
- Riverhead: $17.30.
- Buffalo: $16.82.
- Cortland: $16.37.
- Hudson: $16.25.
The ranking is led by Queens, where La Guardia and JFK airports are located, whose routes have higher demand due to the high and intense traffic at the airports. The Bureau of Labor Statistics (BLS) is the agency responsible for tracking employment in the country and it states that the State of New York ranks third in the best characteristics for taxi driver employment.
What awaits the taxi sector?
It is evident that, as the data shows, passenger demand depends almost entirely on the time and location of taxi service. However, this scenario does not seem to be everlasting, as there are not only two ride-hailing companies, but more and more are offering their services at highly competitive prices, with increasingly personalized service that is able to provide what the taxi industry has not considered covering for years. Do you think yellow taxis will cease to exist and become a part of the memory and museums of New York City?
Did you know that taking a taxi or hiring an Uber is more expensive in North Carolina?