Taxi Medallion Troubles Far from Over
Taxi Medallion Loans are a national $12.9 Billion crisis.
In 2012, taxi medallions were: 13,500 in New York City (NYC), 7,000 in Chicago and 1,500 in San Francisco (SF) for a total of 22,000 medallions (M). The total number of drivers for hire in these 3 cities today is 190,000 with only 22,000 M drivers, who are part of the total, thanks to Uber and Lyft.
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A Nationwide Problem Requires a National Solution
Lake Forest, IL (February 10, 2020) “Limiting the supply of any service or good, creates an aberration in a market and can lead to a market crisis,” notes the Taxi Medallion Study by Moebs $ervices, an economic research firm. Municipalities limit the supply of taxis by requiring medallions in order to drive up fare prices to increase tax revenue on the fare. This was stable revenue until 2012, when Uber and Lyft entered the market quadrupling the number of drivers for hire without medallions, lowering the price of fares, thereby creating a crisis in the value of medallions. READ FULL ARTICLE
Written By: m.moebs
Date Posted: 2/10/2020
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