Towns within which any taxicab shall be operated shall have the power to make bylaws relating to the licensing of such vehicles therein, fixing reasonable license fees therefor, and requiring proof of reasonable insurance or bond for the protection of passengers riding therein, and failure to conform to such bylaws shall constitute a violation and any fines collected hereunder shall inure to such uses as said towns may direct. The word "taxicabs" as used in this section shall mean any rubber-tired motor vehicle, having a manufacturers rated capacity of not more than 7 passengers, used in the call and demand transportation of passengers for compensation to or from points chosen or designated by the passengers and not operated on a fixed schedule, between fixed termini, or any such vehicle leased or rented, or held for leasing or renting, with or without driver or operator.
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