ABSTRACT
The taxi industry is the best example of an industry in the early stages of laissez-faire capitalism. The taxi industry unlike any other public service is one of the most visible and critical services in the New York city. The city must eliminate the concept of the medallion and develop an industry that provides public service at a reasonable cost. Public service has been improved with the growth of the gypsy cab operators although their presence has not eliminated the cost inefficiency of the fleet owner or his low regard for the public. The gypsy cab industry also has been used as a public scapegoat by the same parties who have condemned the actions of the cab driver. However, the existence of the gypsy cab has forced the industry to redefine its business rules and adapt to a changing economic world. Owner-drivers have not realized the extent to which the situation has been redefined by the gypsy cab industry.
