Taxi Rental Agreement Template

Taxi Rental Agreement Template

This Taxi Rental Agreement (“Agreement”) is made as of [Date] between:

Owner / Taxi Company
Name or Legal Entity: [Owner / Company Name]
Address: [Street Address]
City, State/Province, ZIP/Postal Code, Country: [City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]

(“Owner”)

and

Driver
Name: [Driver Full Name]
Address: [Street Address]
City, State/Province, ZIP/Postal Code, Country: [City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]
Driver License Number: [License Number]
Taxi / Hack License Number (if applicable): [Taxi License Number]

(“Driver”).

Owner and Driver may be referred to individually as a “Party” and together as the “Parties”.

1. Taxi Vehicle and Rental Overview

1.1 Taxi Vehicle. Owner rents to Driver the following taxi vehicle (“Taxi”):

• Vehicle Type: [Sedan / Minivan / Other]

• Make: [Make]

• Model: [Model]

• Year: [Year]

• Color: [Color]

• Vehicle Identification Number (VIN): [VIN]

• License Plate Number: [Plate Number]

• Medallion / Plate / Permit Number (if applicable): [Number]

1.2 Taxi Equipment. The Taxi includes, if applicable:

• Taximeter: [Meter Make / Model]

• Roof light / taxi sign

• Dispatch radio or data terminal

• In-car payment terminal or mobile POS

• Security camera or shield

All installed equipment and accessories remain the property of Owner unless otherwise agreed.

1.3 Purpose. The Taxi is rented to Driver solely for use as a licensed taxi for transporting passengers for hire, in accordance with applicable taxi regulations and this Agreement.

2. Rental Period and Shift Times

2.1 Rental Period Type. The Parties agree that the Taxi is rented on the following basis (select or complete):

• Daily rental; or

• Weekly rental; or

• Monthly rental; or

• Other rental cycle: [Description].

2.2 Shift Times. For each rental day, Driver is authorized to use the Taxi during the following shift(s):

• Shift Start Time: [Time]

• Shift End Time: [Time]

Additional shifts or variations may be listed in an attached schedule.

2.3 Pickup and Return Location.

• Pickup Location: [Address or Yard / Garage]

• Return Location: [Address or Yard / Garage]

Driver shall pick up and return the Taxi at the agreed locations unless Owner approves a different arrangement in writing.

2.4 Late Return. If Driver returns the Taxi later than the agreed Shift End Time or rental end time without permission, Owner may charge an additional fee of [Currency and Amount] per [hour / day], plus any related costs.

3. Rental Fees, Security Deposit, and Payments

3.1 Rental Fees. Driver shall pay Owner rental fees as follows:

• Daily rental fee: [Currency and Amount] per day; and/or

• Weekly rental fee: [Currency and Amount] per week; and/or

• Other agreed fee structure: [Description].

3.2 Payment Schedule. Rental fees are due as follows:

• Payment due for each day’s rental: [Due Time, e.g., “at vehicle pickup” or “at shift end”]; or

• Payment due on [Day] of each week for the upcoming week; or

• Other schedule: [Description].

3.3 Security Deposit. Driver shall pay a refundable security deposit in the amount of [Currency and Amount] (“Security Deposit”) before taking the Taxi. Owner may apply the Security Deposit to unpaid rental fees, fuel charges, cleaning fees, damage, missing equipment, fines paid on Driver’s behalf, or other amounts owed under this Agreement.

3.4 Return of Security Deposit. Within [Number] days after this Agreement ends and all amounts are calculated, Owner shall return any remaining Security Deposit balance to Driver, together with an itemized statement of any deductions.

3.5 Payment Method. Driver shall pay rental fees and other charges by [cash / credit card / bank transfer / other]. Driver authorizes Owner to charge the provided payment method for amounts due under this Agreement, where applicable.

3.6 Late Payments. Any rental fees not paid when due may incur a late fee of [Currency and Amount] or [Percentage]% of the overdue amount, plus interest at [Percentage]% per year or the maximum allowed by law.

4. Fuel, Cleaning, and Operating Expenses

4.1 Fuel. The Taxi is provided with fuel level at: [Fuel Level]. Driver shall:

• Return the Taxi with fuel level at [Required Level]; or

• Pay a fuel charge based on fuel used, calculated as: [Currency and Amount] per [unit] or actual cost.

4.2 Cleaning. Driver shall keep the interior and exterior reasonably clean. If the Taxi is returned with excessive dirt, stains, or trash, Owner may charge a cleaning fee of [Currency and Amount] or the actual cost of cleaning.

4.3 Operating Expenses. Driver is responsible for operating expenses during the rental, including fuel, tolls, parking, car washes (if required), and similar costs, unless Owner agrees otherwise in writing.

5. Licensing, Permits, and Regulatory Compliance

5.1 Driver Licensing. Driver represents and warrants that Driver:

• Holds a valid driver license for the Taxi; and

• Holds any required taxi, hack, or professional driver license or badge required in the operating jurisdiction.

5.2 Regulatory Compliance. Driver shall comply with all applicable taxi, transport, and traffic laws, including:

• Operating only in authorized areas;

• Charging fares in accordance with the meter and tariff rules;

• Displaying required licenses, identification, and rate cards;

• Complying with any rules regarding pickups, ranks, and dispatch.

5.3 Inspections. Driver shall present the Taxi for any required regulatory inspections or checks when requested by Owner and applicable authorities.

6. Use of the Taxi and Restrictions

6.1 Permitted Use. The Taxi may be used only:

• By Driver and any additional driver approved by Owner in writing;

• For transporting passengers for hire or on authorized taxi business;

• Within the permitted operating area: [City / Region / Zone].

6.2 Prohibited Use. Driver shall not:

• Use the Taxi for personal use beyond reasonable commuting without Owner’s consent;

• Use the Taxi for transporting illegal goods or substances;

• Allow any unlicensed person to drive the Taxi;

• Use the Taxi for racing, stunts, or off-road driving;

• Disable or tamper with the meter, GPS, camera, or other safety equipment.

6.3 Passenger Conduct. Driver is responsible for managing passenger behavior in a reasonable manner and may refuse service in accordance with local rules where passengers pose a safety risk or violate applicable regulations.

7. Maintenance, Repairs, and Breakdowns

7.1 Owner’s Maintenance. Owner is generally responsible for scheduled maintenance and major repairs required due to normal wear, manufacturer defects, or age, including:

• Regular servicing;

• Major mechanical repairs;

• Required safety inspections.

7.2 Driver’s Duties of Care. Driver shall:

• Check basic items such as tires, lights, and fluids before operating;

• Immediately report any unusual noises, warning lights, or handling issues;

• Not continue to drive the Taxi if it is unsafe or likely to cause further damage.

7.3 Repairs Due to Misuse. Damage or repairs caused by Driver’s misuse, negligence, or violation of this Agreement (for example, driving with flat tires or ignoring warning lights) are the responsibility of Driver and may be charged against the Security Deposit or collected separately.

7.4 Breakdowns. In case of breakdown or mechanical failure:

• Driver shall safely stop the Taxi and contact Owner at [Phone Number];

• Owner will advise on towing, repair, or replacement procedures;

• Driver shall not authorize major repairs without Owner’s consent, except in an emergency where Owner cannot be reached and immediate action is required for safety.

8. Insurance and Risk of Loss

8.1 Owner’s Insurance. Owner maintains the following insurance on the Taxi (if applicable):

• Liability insurance as required by law;

• Any additional taxi or commercial auto coverage required for operation.

Coverage details, including limits and deductibles, may be listed in an attached schedule.

8.2 Driver’s Insurance Obligations. Where required, Driver shall:

• Maintain any personal or professional insurance required by law or Owner;

• Pay any deductibles applicable to claims arising from Driver’s use of the Taxi, as specified here: [Deductible Terms].

8.3 Risk of Loss. Except to the extent caused by Owner, Driver bears the risk of loss, theft, or damage to the Taxi during each Rental Period, subject to applicable insurance and law.

9. Accidents, Tickets, and Fines

9.1 Accidents and Incidents. In the event of an accident, injury, or incident involving the Taxi, Driver shall:

• Ensure safety and call emergency services if needed;

• Notify law enforcement if required;

• Notify Owner as soon as reasonably possible;

• Provide Owner with a description of the incident and copies of any reports or citations.

9.2 Tickets and Fines. Driver is responsible for all traffic tickets, parking fines, tolls, congestion charges, and similar penalties incurred while operating the Taxi during the Rental Period.

9.3 Processing Fees. If Owner receives notices of violations, Owner may pay or transfer them as permitted and charge Driver the amounts plus an administrative fee of [Currency and Amount] per incident.

10. Relationship of the Parties and Indemnity

10.1 Status of Driver. The Parties intend that Driver is an independent contractor, not an employee of Owner. Driver is responsible for any taxes, social security, or similar obligations arising from Driver’s earnings, subject to applicable law.

10.2 Indemnity. To the extent permitted by law, Driver shall indemnify and hold Owner harmless from third-party claims, damages, fines, and expenses arising from Driver’s use or operation of the Taxi, except to the extent caused by Owner’s own negligence or wrongful acts.

11. Term, Termination, and Suspension

11.1 Agreement Term. This Agreement starts on [Agreement Start Date] and continues until [Agreement End Date] or until terminated as provided in this Section.

11.2 Termination by Either Party. Either Party may terminate this Agreement without cause by giving [Number] days’ written notice to the other Party, unless a longer or shorter notice period is agreed here: [Notice Terms].

11.3 Immediate Termination or Suspension by Owner. Owner may immediately terminate or suspend Driver’s right to use the Taxi if:

• Driver operates without required licenses or permits;

• Driver uses the Taxi in a dangerous, illegal, or prohibited manner;

• Driver repeatedly fails to pay rental fees when due;

• Driver materially breaches this Agreement.

11.4 Return of Taxi on Termination. Upon termination or suspension, Driver shall immediately stop using the Taxi and return it to Owner at the designated Return Location, together with keys and any equipment.

12. Return Condition and Final Settlement

12.1 Condition at Return. At the end of each Rental Period and upon final termination of this Agreement, Driver shall return the Taxi:

• To the agreed Return Location;

• Clean and reasonably presentable;

• With all keys, documents, and equipment provided by Owner.

12.2 Inspection. Owner may inspect the Taxi at return and document mileage, fuel level, and any damage or missing items.

12.3 Final Settlement. After termination, Owner shall calculate:

• Any unpaid rental fees;

• Fuel, cleaning, damage, or other charges;

• Any amounts owed for tickets or fines paid by Owner;

• Any remaining Security Deposit balance.

Owner shall provide Driver with a final statement and any refund or invoice due.

13. Governing Law and Miscellaneous

13.1 Governing Law. This Agreement is governed by the laws of [State/Province, Country], without regard to conflict-of-law rules.

13.2 Entire Agreement. This Agreement contains the entire understanding between the Parties regarding rental of the Taxi and supersedes all prior oral or written agreements on this subject.

13.3 Amendments. Any amendment or modification must be in writing and signed or clearly agreed by both Parties.

13.4 Assignment. Driver may not assign this Agreement or allow others to use the Taxi under this Agreement without Owner’s written consent. Owner may assign this Agreement or its rights in the Taxi, subject to applicable law.

13.5 Notices. Formal notices under this Agreement shall be in writing and delivered personally, by mail, by courier, or by email (with confirmation if required by law) to the contact details stated at the beginning of this Agreement or to updated details provided in writing.

13.6 Severability. If any provision of this Agreement is found invalid or unenforceable, the remaining provisions shall remain in full force and effect.

13.7 Counterparts and Electronic Signatures. This Agreement may be signed in counterparts and by electronic signature. Each counterpart is deemed an original, and all counterparts together form one instrument.

14. Signatures

By signing below, the Parties confirm that they have read, understood, and agree to be bound by this Taxi Rental Agreement.

Owner / Taxi Company

Signature: _______________________________
Name: [Authorized Signatory Name]
Title: [Title]
Date: [Date]

Driver

Signature: _______________________________
Name: [Driver Full Name]
Driver License Number: [License Number]
Taxi / Hack License Number (if applicable): [Taxi License Number]
Date: [Date]