'There's no future for taxis': New York yellow cab drivers drowning in debt

[turbinetree]

The premise is familiar: MD Islam left Bangladesh and came to the United States in search of a better life. He arrived in New York, became a taxi driver, and set about following the well-trodden path of the industrious American immigrant.


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Then he began to work towards buying his own taxi medallion.

The medallion system regulates the yellow taxis serving New York City: since 1937, each vehicle has needed a medallion in order to legally operate. Few taxi drivers own theirs; most lease them, paying around $100 for one 12-hour shift.

The limited number of medallions issued by the city made each one highly valuable; individual medallion sale prices went from $50,000 in the late 1970s to over $1m by 2014.

For many taxi drivers, owning a medallion meant success. Homes would be purchased. Children would be sent to universities.

Islam managed to put a down payment on his medallion in 2010, and for a few years, it seemed like a good investment. Then, in 2015, with the widespread popularity of Uber, Lyft and other ride-hailing apps, his fortunes changed.


https://www.theguardian.com/us-news/2017/oct/20/new-york-yellow-cab-taxi-medallion-value-cost

[riversedge]

1. sad story.

[LisaM]

2. It's very unfortunate.

I boycott Uber, but I can't do it alone!

[Squinch]

3. Here's what strikes me in this story:

For many taxi drivers, owning a medallion meant success. Homes would be purchased. Children would be sent to universities

Driving a cab used to be a job for a hard working person who wanted to provide well for his or her family. Now, for yellow cabbies and Uber and Lyft drivers, it's a gerbil wheel that doesn't pay a living wage.

Seems like its going where all middle class jobs are going, as we cut taxes on the wealthy again.

[Codeine]

4. A race to the bottom, and we're all

running whether we like it or not.

[angstlessk]

5. Not all, only the bottom 90+%

The rest eat on the energy we expend racing to the bottom!

[Squinch]

7. Like vampires.

[MichMan]

6. The whole medallion situation is where the blame lies

The problem is that the city decided to artificially limit the number of cabs by requiring medallions in the first place. Can't imagine how many shenanigans were needed to obtain one originally.

Instead of cab owners just needing a city issued permit to operate, they were forced to buy these medallions for a million dollars.

Unfortunately for the drivers and owners that have sacrificed to buy one, many customers appear to prefer Uber.