New York taxi license hits record price: $600,000

[WhiteTara]

http://news.yahoo.com/s/nm/20070530/us_nm/usa_taxis_dc

NEW YORK (Reuters) - The price of a license to operate a New York taxi cab hit a record $600,000 in May, according to a lending company which financed the purchase.

Medallion Financial Corporation said it had financed the purchase of two medallions -- the license to operate a yellow cab in New York -- for a total of $1.2 million by a large corporate fleet operator.

"Prices of corporate medallions have increased from $195,000 in 2001 to the record $600,000 this week," Andrew Murstein, president of the lending company, said in a statement on Tuesday. It said the previous record was about $550,000.

little bit more
:wow:

[mike_c]

1. that is obscene....

jeebus

[Fredda Weinberg]

2. It helped my parents retire

But he was an owner/operator, a dying breed. Now, they're investment instrument held by large fleets.

But they're also being upgraded as never before. The experience is going to get more expensive ... as will everything soon. It's a shame we didn't learn out lessons when we had the chance.

[Sanctified]

3. Basically Licensing has become Corporate Protectionism.

Used to be a guy with a little capital who could afford his own car could start his own taxi business but Corporate greed will always find a way to squeeze the small entrepreneurs out.

[Blue_Tires]

4. how much of that will get passed on to the customers?

lol

[Sanctified]

5. Probably not that much.

The licensing is just a drop in the bucket for a big taxi company that operates an army of cars.

[murloc]

8. 100% of it. naturally

Nobody is driving taxis for charity. They buy the license so they can earn that $600k from customers and more.

[lonestarnot]

6. Guess people better start valking.

[Swamp Rat]

15. Or riding a bike

;)

I am biking with a group of progressive planners tomorrow morning, showing them different neighborhoods in NOLA.

:hi:

[murloc]

7. Does the City charge that much ?

Or is it a case of where all the licenses have been given out at reasonable costs, and now in order to get one you have to buy it from an existing license holder?

We're not talking about Nuclear reactor licenses here...were talking about a license to operate A TAXI CAB.

[Spinzonner]

9. Have you seen how Taxi drivers drive in NY ?

I'll take my chances with the reactor.

:-)

[murloc]

12. :)

[pinniped]

16. They are batshit crazy in SF, too.

.

[Stephanie]

11. It's like buying a liquor license from an existing establishiment.

The total number of medallions is limited. I don't know how often they issue new ones - probably rare.

[murloc]

13. Ok, that makes a little more sense

Its still obscene, but it would be much worse if that was actually was the government was charging.

Still though, why limit the number? Seems like it would only create an artificial scarcity.

[Stephanie]

14. For the same reason you limit the number of available liquor licenses.

Unlimited licenses would be more of a nuisance than a benefit to the community. The price of a medallion is shocking, but it's actually about what you would pay for a one-bedroom apartment in Manhattan. And when I think back to the days of $100,000 medallions, that too was about the price of an apt back then.

[marmar]

10. The subway is so much more convenient......except for east-west rides in the rain....

I don't know why anyone takes cabs.

[Odin2005]

17. More proof that there is no such thing as a "free market"

There are only markets regulated for the benefit of the elites and markets regulated for the benefit of all, a truly free market cannot exist in reality.