Now this is a trip. The New York Times is telling Taxi Drivers to stop blaming Uber, Lyft and other ride sharing companies for their current financial woes. Even the NY Times got it right when it comes to who should be to blame for the current debacle.
Most metropolitan areas have strict rules on taxi providers. They often have to buy a “license” or medallion in order to even begin offering rides to the public. Most of these same metropolitan government also restrict the number of drivers there can be.
For a time it worked. Sort of. Because of the government mandated limits, the price of these licenses went through the roof. So anyone who simply wanted to own their own job had to dish out up to and over $1 million. Can you imagine having a million dollar mortgage on your taxi cab?
When the sharing economy hit the ride for hire economy, there was no doubt about who was going to suffer. The taxi providers.
And indeed that is exactly what happened. And it was something that would have happened even if there was no sharing or gig economy. It was a government mandated limitation and economy and those NEVER last because they are not based on the private sector. Uber just brought the issue to the fore sooner rather than later. Besides, if this taxi collapse had not happened now, medallions value could have risen to over $2 million. Can you imagine the damage THAT would cause?