After Tony is beaten badly in his most recent boxing match, the state takes his boxing license away.

Zena asks Louie to drive her friend Emily, who has just been dumped and is drugged, drunk, and upset, back to her apartment. While there, Emily comes on to Louie and he ends up cheating on Zena. Louie soon brags of his conquest, but Elaine gets so angry that she is about to tell Zena everything. Louie decides to tell Zena himself though, who understandably dumps him. Louie then shows up at Emily's apartment, but Emily is clearly regretting her indiscretion with Louie and is getting back with her boyfriend anyway, so she kicks him out quickly. Louie, back at the garage, is in tears because he is so upset at the turn of events. Alex, feeling sorry for Louie, gives him some sage advice on how to get Zena back. All of a sudden, Louie turns off the tears and Alex sees that he's been had and gets furious with himself. As Louie goes to talk to Zena (and presumably gets back together with her), he assures Alex that the tears were real.

Tony begins working out with a new cabbie, Lucius, who is a former football player. Tony is in great shape all of a sudden and Lucius inspires Tony to try to get his boxing license reinstated. Tony is not hopeful that the boxing commission will reinstate him, so he is surprised when he gets his license back. In addition, he getes a major fight scheduled with a promising young fighter. Meanwhile, Lucius goes away to Miami to try out for the Dolphins. Without Lucius around, Tony loses his motivation and his training suffers. At the fight, he is getting pummelled until Lucius, who has learned that he has made the Dolphins, arrives to inspire him. With Lucius' support, Tony turns the fight around and knocks out his opponent.

After Jim's home is destroyed by a wrecking ball, he stays with Louie, much to Louie's dismay after Jim declares him his ""best buddy."" Jim soon burns Louie's apartment after a cooking accident, though. Initially, Louie is angry, but sees an opportunity to make some money, when he learns that Jim gets a blank check from his wealthy father to reimburse Louie for his losses. Louie is not sure how much to ask for, though, since Jim says he has to call his father to okay the amount. After much lamenting over the amount, Louie settles on about $30,000 and Jim's dad okays it. Louie is overjoyed until he learns that Jim's dad was expecting the amount to be more like $200,000.

When Elaine is offered a job as an art gallery manager in Seattle, she asks the gang for help in making a decision. The cabbies share with Elaine some stories about life changing decisions they once had to make. Tony talks about how he refused to take a dive in a major fight, even though he will likely be in trouble with the mob. In the fight, Tony learns that the other fighter has also been paid to take a dive, and the fighter does so in comic fashion. Next, Louie talks about how he became a taxi dispatcher after mercifully taking over for the kindly old dispatcher who had to take his wife to the doctor. Louie finds he likes the job and forces the old man out of the dispatcher's job into retirement. Finally, Jim tells of how he was very studious at Harvard, until his free-spirit girlfriend turned him on to hash brownies. (Part one of two)

Newlyweds Latka & Samka throw a Shloogel, one of their religion's traditions. The shloogel is, in effect, a party at Mario's where they set all the gang up on blind dates. Tony is set up with Vicki, an abrasive brunette and immediately starts arguing with her. Elaine is set up with mousy Arnie, who has low self esteem. Jim is set up with actress, Marcia Wallace, who played Carol on his favorite show, Bob Newhart. Louie is set up with Judy, a pretty blind woman. Alex is set up with Susan, who seems to be his dream woman and he seems to be falling for her immediately. Despite the fact that none of the other matches seem perfect, all of them show promise by the end of the evening.

Louie gets a call from Emily, who jilted him in an earlier episode, who is drunk and drugged and wants to meet him at a nearby bar. Louie decides to go over there to throw a drink in her face and reject her, therefore getting the last laugh. However, when he gets to the bar, Emily serenades him and has Louie eating out of her hands. The next morning, she is shocked to see him wake up next to her, but Louie somehow convinces her that they are meant for each other. They begin a relationship but it becomes evident that Louie has become Emily's slave and he's starting to hate himself for it. Eventually she comes to a realization of what she's doing to him and breaks it off with Louie, who is relieved, but he finally exacts revenge by throwing orange juice in her face.

Alex's ex-wife, Phyllis, depressed and lonely, comes to see Alex, who takes pity on her and includes her in his holiday plans. This turns ugly, when she manages to bring the whole gang down with her self-pity. Her Christmas present to Alex is that she won't bug him for New Year's, which turns out to be the best gift she could give him.

Alex takes ownership of his old dog, Buddy, who has been living at his sister's place in the country. Buddy is now 19 and Alex wants to spend as much time with him as possible. The dog is lovable but at his advanced age, requires constant care, and Alex soon is taking Buddy with him everywhere including the cab. The gang soon sees that Buddy is not doing very well and gently suggest that Alex consider putting him to sleep, but Alex refuses. Jim suggests that Alex get Buddy to do his old trick (playing dead) to determine his wellness. Buddy does the trick successfully, although gives the gang a scare when he doesn't get up right away and they really think he may be dead (thankfully, he turns out to be okay). However, the next time the gang sees Alex, he doesn't have Buddy with him, and Alex says that he had to take Buddy to the vet where he died. Louie ushers everyone out of the garage so Alex can grieve alone. With everyone gone, the stoic Alex cries as the episode ends.

Jim buys the cabbies' hangout, oblivious to the fact that no one else hangs out there.

Jim wants the cabbies to experience the joy of giving, so he hands each of them $1000 to give away.