The Million-Dollar New York City Taxi Medallion May Be a Thing of the Past (due to Uber)

slate ^ | Dec 1 | Alison Griswold

[dennisw]

Much has been made of the $1 million New York City taxi medallion—the ticket to operating a yellow cab. When a pair of them sold for more than $2.5 million in November 2013, the New York Times declared that the medallion, once "the emblem of a dream achieved for those who work hard enough to afford it," had become "a striking example of how exclusive some corners of New York have become." The dreams of cabdrivers became the fortunes of wealthy "corporate medallion" owners.

Despite the still-recent entry of on-demand ride services like Uber and Lyft into the New York City taxi market, it looked for a while like medallion demand had remained strong. But then in October, the average price of an individual taxi medallion in the city suddenly fell 17 percent from its peak in spring 2013, to $872,000. Medallion prices are similarly down in Chicago, Boston, and Philadelphia. And according to a recent analysis from the Upshot, even before October, average medallion prices in New York may not have been as high as they seemed.

Declining taxi medallion prices, while not surprising considering the influx of new ride services, are one of the biggest reasons that taxi lobbies have adamantly opposed services like Uber and Lyft. As Emily Badger reported for Wonkblog earlier this year, taxi medallions have long been the best investment in America. Many taxi drivers have their retirements tied up in medallions they've purchased. As alternative taxi services have grown in popularity and taken market share from cabs—largely to the benefit of consumers—those drivers have seen their life savings fade away.

[nascarnation]

Why isn’t the mob taking down Uber?

Or is Uber a regime affiliate?

[KarlInOhio]

taxi medallions have long been the best investment in America. Many taxi drivers have their retirements tied up in medallions they've purchased. As alternative taxi services have grown in popularity and taken market share from cabs—largely to the benefit of consumers—those drivers have seen their life savings fade away.

Win with government enforced shortages, lose with government enforced shortages. I feel as sorry for them as I do for hoarders when the government ends a rationing program. And I won't feel sorry with those who get crushed in the carbon tax and credit market.

[Wuli]

No extreme problem, yet, for the price a NYC taxi medallion.

The TLC (taxi and limousine commission) recently declared the bid and ask price for any medallion put up for sale cannot drop below $700,000. The cartel is trying to control the “market” price of its own means for cartel membership. And they hope the NYC progressives will render enough TLC regulations regarding operations of Uber and the like to keep the cartel in business for years.

[SamAdams76]

The reason they ran out of toilet paper in the Soviet Union was that the government established price was so low that suppliers had no incentives to make it.