Abstract
In the past 10 years the taxicab industry in the USA has begun entering into service contracts with public agencies. These are demand responsive transit (DRT) systems and consist of DRT for the general public and for the elderly and/or handicapped; additionally, there fixed-route transit services. The cost-effectiveness both for the public and the taxi companies, and the annual revenue to the latter is assessed. Other financial implications are considered.-J.W.Cooper