...aren't taxi drivers employees?
The cab company leases the medallions and has some store of medallions it owns. It buys and maintains the cars and runs the dispatching service.
The medallions is suppposed to be nontransferrable and free, you would only need to pass some certification tests, but there are ridiculous levels of corruption, and a pinch of violence here and there (For example drivers in certain spots violently banning others from using the same spots, even with guns if they think is needed).
Here Taxi Mafia runs strong, but is still made of individuals, not companies.