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> Why do people pay $1 million to own a cab? Because this is the aggregated value they estimate to be, based on the number of years they will operate the cab fo

> Why do people pay $1 million to own a cab? Because this is the aggregated value they estimate to be, based on the number of years they will operate the cab for(and the profit they will make from it). This is precisely why most cab owners in the NYC are immigrants who can barely speak English, because only they have the savings to own and operate a cab. I find it extremely hard to believe that an immigrant with $1 million in savings (which practically makes someone rich in most parts of the world) would move to NYC and then decide to become a cab driver.

splintercell 12y ago
The two things are facts: a) It takes $1 million to own a cab medallion http://www.nytimes.com/2013/11/15/nyregion/1-million-medallions-stifling-the-dreams-of-cabdrivers.html?_r=0 http://www.nytimes.com/2013/11/15/nyregion/1-million-medalli... b) 82% of NYC Cab drivers are foreign born(and that will be your experience in the city). http://usatoday30.usatoday.com/travel/news/2004-07-07-nyc-cabbies_x.htm http://usatoday30.usatoday.com/travel/news/2004-07-07-nyc-ca... So you tell me, how do these immigrants end up being the Cab drivers with such a high barrier to entry?