[pvg]

In SF every driver, except for the tiny minority who own a medallion pays the gate fee. Since the medallion licenses a cab to operate 24/7, medallion holders also lease out their medallions if and when they don't use them personally.

The MTA sets the meter rate, the gate fee and both the number and sale/resale price of medallions. It seems it almost doesn't matter how evil or virtuous cab companies are since the system doesn't appear to have much flexibility, room for competition or self-correction.