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The thing is, if you run the numbers cab drivers have made this investment and it has been a great investment for a long time. But on 10-20 year timelines who c
by kjeetgill 7y ago
The thing is, if you run the numbers cab drivers have made this investment and it has been a great investment for a long time. But on 10-20 year timelines who can account for way Uber/Lyft changed everything?
I'm not that familiar with the regulations and history around medallion systems, but I can see what the parent post is getting at:
Why does a taxi driver need to take out a loan/risk to work?
When I take a job, there's risk with options or shares maybe, but I don't incur literal debt to begin work. It's the legal framework around medallions and private contracting that even put that risk on individuals.
- mbreese 7y ago> Why does a taxi driver need to take out a loan/risk to work? This isn’t about a taxi driver... it’s about owning a taxi medallion. You don’t need a loan to drive a taxi. If you want to just drive the taxi, you can work for an existing company. But the company does need a medallion for your taxi. This is much more like starting your own business. With a medallion, you can work your own taxi on your own time schedule - which is the main benefit to the owner. It’s also an asset that you can rent out to others when you aren’t using it. So, taking a new job isn’t the right analogy. Think more like starting your own company (or more accurately, borrowing money to start your own company). There is significant freedom in that, but it also carries risk.