> the companies have an obvious interest in eradicating these practices
What is that interest? The way cabs most frequently work in the US is that the drivers are effectively independent contractors who rent the car (and ever valuable medallion) from the taxi company. The companies themselves may or may not accurately report their income, but it doesn't have anything to do with the fares. Some companies charge a percentage of fares, so in that instance I'd assume there are more stringent controls.
It's similar to restaurants in the US, cash tips are drastically underreported and this is fully known by management.
Typically, the drivers are employed by the companies, and are paid either by the hour, or receive a percentage of the fares. In either case, underreporting the fares to the company increases the driver's share. Also, tips, though they must be reported, are exempt from taxation.
But just like with bartenders, it's pretty easy for a company to identify a driver who is skimming the fares -- their $/mile or $/hour will be lower if he steals more than his peers.
The cab company has an interest in accurate numbers because their payment is based on honest reporting of the fares.
What is that interest? The way cabs most frequently work in the US is that the drivers are effectively independent contractors who rent the car (and ever valuable medallion) from the taxi company. The companies themselves may or may not accurately report their income, but it doesn't have anything to do with the fares. Some companies charge a percentage of fares, so in that instance I'd assume there are more stringent controls.
It's similar to restaurants in the US, cash tips are drastically underreported and this is fully known by management.