Comment Re:555% markup is very profitable (Score 1) 329
Yes, but that five mile trip takes 10 driving minutes, plus entry/exit, plus time to next fare - call it 15 minutes per five mile fare while on duty over a whole shift. $15 - x 4 fares per hour = $60. Pay the cabbie a wage that doesn't require federal assistance (125% of poverty wage, plus medical benefit costs, plus taxes, plus overhead for leave) comes to about $22-25 hour all burdened. So your "throw-away employee" rate for labor leaves you about $25/hr - 42%Profit (71% markup).
Considering that not every hour is peak, that's not exactly rolling in it. (FWIW, gross margins before labor on fast food restaurants are also in the 600% range for food products).