3 ms·

Why is the company owning the car a bad thing

• s1artibartfast 3y ago
  It isn't necessarily, but cab companies often operated on The Medallion system. Medallions going to cost upwards of a million dollars and be required to operate a cab. Cab companies would hold the medallion and charge enormous rent for drivers to use their cabs and medallions.
  • ipaddr 3y ago
    Originally they cost much less but demand / supply has caused the spike. The sensible thing would be to increase Medallions but that reduces the profit from the first group plus increases traffic
    • kevincox 3y ago
      There is also a desirable number of cabs to be driving. Having cabs lined up idling on the side of every street, even if they are profitable, isn't optimal for the city. So there is a legitimate reason to provide a limit. Of course it is clear that the medallion system has other problems like raising barrier to entry. Maybe it would make more sense if the city rented/auctioned the desired number directly on relatively short timeframes.