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7.2 For-hire Motor Carriers of Passengers

For-hire non-exempt motor carriers of passengers transport passengers for compensation. An interstate for-hire passenger carrier must obtain operating authority registration before transporting passengers in interstate commerce. A passenger carrier may provide both for-hire and private transportation. See FMCSA’s Passenger Carrier Guidance Factsheet for information about exemptions.

A specific trip is for-hire if there is direct or indirect compensation. Direct compensation occurs when payment is made to a motor carrier by the passengers or their representative for transportation and the payment is not included in a total package charge. Indirect payment is compensation involving a total package charge. Companies such as hotels, car rental businesses, and parking facilities that transport their customers are often indirectly compensated for transportation because the transportation cost is covered by a total package charge.

For-hire passenger transportation can include a variety of vehicles and operations. A ‘non-profit’ status of an entity is irrelevant in determining whether it is for-hire. For-hire transportation is not required to be available to the general public.

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