Taxi medallion prices drop under pressure from Uber

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MIDTOWN, Manhattan (PIX11)--  War is hail.

In the battle to win the hearts and minds and wallets of New Yorkers, Uber is making inroads.

Uber has disrupted the monopoly of yellow taxi cabs here in New York City so much so that the price of a medallion cab license in New York City had reached a peak in spring of 2013 at over $1 million and now there's been a 17 percent  drop to $872,000 and yellow cab drivers are not happy.
"I am getting poor," Mohammed Rahman, a yellow cab driver, told PIX 11. "I worry all the time," the cabbie added.

Uber doesn't spend any money on marketing. it's all word-of-mouth and Uber rider Veronica Kozlova is spreading the word.

"The stereotype of yellow cab driver is so stressed out and drive crazy," Kozlova said. "Uber is more chill and respectful."

When you press a button on your phone, Uber arrives often in under five minutes.

Noor Mengle had been driving a yellow taxi for 16 years until last month when he made the switch to Uber.

While he may end up making the same or less, he says he's much happier. With so much less stress, he can cut back on his blood pressure medicine.

"I may not make millions, but I feel better," Noor said.

How do prices compare in the Uber versus yellow cab battle? It all depends on the type of car you order and the time of day you ride, but Uber advocates are everywhere.

John from Boston said yellow cabs have got to adjust to the times.

"They have to change and get apps," he said.

The number of medallions was set in 1937 at 13,437 and hasn't changed much since then.

4 comments

    • Robert Blake

      Not a credit bubble but municipal revenue generating private-public partnership asset that benefitted New Yorkers.
      You want to see the REAL bubble take a look at 40 BILLION dollars worth tax-evading law-breaking uber, from the
      operations of whom no one, aside of a few oligarchs, is benefitting.

  • Robert Blake

    Proceeds from each taxi medallion sold were going directly to municipal coffers. Each taxi medallion transfer was taxed. That too is direct municipal revenue. Philly is missing millions that are needed by municipal projects, hospital construction, road repairs, city pension, etc – all that “thanks” to private multi-billion tax-evader uber.
    If you, dear reader, have not woken up yet to the privatization disaster that uber is. To the billions it illegally launders from our streets and to uber tax-heaven offshore bank accounts, then you haven’t been following this ride-sharing fraud closely.
    Uber has billions, why can’t it afford same taxes, same municipal dues, compliance to same regulations by which hundreds of small transportation businesses are governed ? Again, this private corporation has billons and if fraud wouldn’t be uber’s modus-operandi, it could have easily afford all compliance.
    Think Enron and Walmart in one arrogant clueless not very intelligent (though iPhone-enabled) face. That’s tax-evading uber for you.

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