It Costs Over $1 Million For A Licensed NYC Taxi

Jalopnik ^ | 11/19/2013 | Zac Estrada

[Responsibility2nd]

Cab fares around Manhattan can be ridiculous, that's expected. But imagine paying more than $1 million just to own a licensed taxi in New York City. That's the reality now.

The New York Times reported that the city's first taxi medallion auction since 2008 netted $200 million for the sale of 200 of the licenses, making the average price of entry to legally drive one of the roughly 15,000 yellow cabs is almost double what it was at that last auction. The medallion system goes back to the 1930s and was designed to keep the number of cabs limited to a sustainable amount.

In another sign of the times at the auction, two medallions sold as a "mini-fleet" went for a record $2.5 million, also roughly twice as much as in 2008.

Taxi commissioner David Yassky told the Times the industry was becoming "winner take-all" and that the idea of a taxi driver actually being able to own his or her taxi company one day is becoming increasingly difficult.

Of course, the taxi commission views it as an indication of the strength of the cab business and the economy, so there's that. But to put into perspective how strong the business is, one of these individual medallions is roughly five times the price of starting a Quizno's franchise.

So, if you're looking for a career change, maybe you should learn how sandwiches are made instead of driving a taxi. newyorkcity

[Responsibility2nd]

Posted here for obvious reasons....

 

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[Cowboy Bob]

I’d rather buy a NYC politician. They are cheaper to acquire, and you have a better return on your investment.

[Red Badger]

The medallion system goes back to the 1930s and was designed to keep the number of cabs limited to a sustainable amount.

No, it was designed to keep out anybody who was not part of the entrenched powers that be, IOW, competition..................

[Red Badger]

And you don’t have to change the oil....................

[Vigilanteman]

LOL! How true.

A friend of mine from a former life had relocated from New York to Tokyo. I asked him about first impressions and he told me the taxi drivers in Tokyo had (a)those nifty doors which opened automatically for their fares, (b)neat and clean cabs, and (c)a passable ability to communicate with English speaking customers.

[Sgt_Schultze]

The same purpose as the rise of trade unions after the Civil War - better paid (white) laborers in the north who sought to restrict the employment of newly freed black laborers from the south.

[longtermmemmory]

throwback to the old guild system.

Mandatory Lawyer Bars are the same. It keeps the insiders up and the others out.

[SoCal Pubbie]

When I was back in Seoul in the 80s and 90s for business, they had a system of color coded cabs. As I recall, the different colors indicated what areas those cabs went. Some stayed in the downtown area, others went out to Kimpo, etc. They also had white gloved drivers, with levers to open the doors. However, many did not speak English!

[Red Badger]

Julius Caesar:

From WIKI:

After the triumph, Caesar set forth to passing an ambitious legislative agenda.[79] He ordered a census be taken, which forced a reduction in the grain dole, and that jurors could only come from the Senate or the equestrian ranks. He passed a sumptuary law that restricted the purchase of certain luxuries. After this, he passed a law that rewarded families for having many children, to speed up the repopulation of Italy. Then he outlawed professional guilds, except those of ancient foundation, since many of these were subversive political clubs. He then passed a term limit law applicable to governors. He passed a debt restructuring law, which ultimately eliminated about a fourth of all debts owed.[79]

[nathanbedford]

Living in Germany now I am more more familiar with the guild system and how it functions.

To limit the number of taxi cabs to this degree that pushes their value up to $1 million makes about as much sense as rent control. Can you imagine if they limited the number of physicians? Plumbers?

Once the public can be reasonably assured that the taxi drivers are not criminals, have undergone investigation, have posted bond, operate safe vehicles, and are capable drivers there should be no limit except that imposed by competition.

Some years ago black numbers runners in Harlem raised hell at the time Lotto became legal. Their beef? They said we just spent generations taking the numbers game away from the Italians and now the government takes it away from us. They had a point.

[Red Badger]

Can you imagine if they limited the number of physicians? ........................now? yes.....................

[nathanbedford]

unbelievable isn't it?

[arderkrag]

Why should I have to buy a magic amulet to let someone pay me to drive them to a destination?

[Red Badger]

One million dollars for a badge?.....We don't need no stinking badges!................

[Alex Murphy]

The New York Times reported that the city's first taxi medallion auction since 2008 netted $200 million for the sale of 200 of the licenses, making the average price of entry to legally drive one of the roughly 15,000 yellow cabs is almost double what it was at that last auction. The medallion system goes back to the 1930s and was designed to keep the number of cabs limited to a sustainable amount.

Protectionism at it's finest.

[DJ MacWoW]

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[GeronL]

Yes it is. The supply is artificially restricted and this is the end result.

[Gay State Conservative]

I take the subway when in NYC just on general principles.I refuse to take cabs except in the most urgent situations (which seldom happen to me).I can afford the cabs there (as can most middle class stiffs like me) but taking the subway teaches me humility.

[Celtic Conservative]

the demand in closed supply systems such as this are usually met through some sort of "black market" or sub rosa arrangement. This is true in NYC. Although highly illegal "gypsy cab" services abound. Unmarked, commonly used non commercial vehicles with private owners working for themselves. Even when artificially manipulated, the market tends to find a way.

CC

[GeronL]

The black market is going to be booming with government like this.