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The regulated taxi medallion system wasn't good for drivers either. It was good for medallion owners. Before Uber, taxi medallions in New York were selling for
by nearbuy 7y ago
The regulated taxi medallion system wasn't good for drivers either. It was good for medallion owners.
Before Uber, taxi medallions in New York were selling for around $1 million. These pricey medallions tended to get bought up by large companies that could afford the investment. Your driver likely couldn't afford one, so instead, drivers would rent a cab and medallion for about $100 per 12-hour shift, on top of the dispatcher fees.
This system was supposed to restrict the supply of cabs to ensure drivers earned a decent wage. Instead, all the value is extracted by the medallion holders.
- munk-a 7y agoOh yea, it was a terrible system - even the concept of limiting the number of cabs is sort of silly - but if the medallions get as expensive as they did then I think it's a clear indication that something in the market is broken. Still, that doesn't mean rainbows come out of Uber's bum - it was absolutely a market ripe for new competition, Uber just added that competition in a terrible manner.