Taxi Medallion Prices Are Plummeting, Endangering Loans (Good)

Times change and along with them economies. Uber and Lyft have hammered the almost ubiquitously crony taxi cab industry around the world. Yes, some of those medallion loans will go south. The banks and the cab companies made bad bets and now they lose. That is how markets work.

Who knows? Maybe teleportation devices will put Uber and Lyft out of business next year. Creative destruction.

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The Struggles of New York City’s Taxi King

He wanted a bailout because Uber and Lyft have hammered his business. He leveraged himself to the hilt financing more taxi medallions than he should have and now he’s crying in his beer because he is losing business and medallion prices are tanking. Boo hoo, he wants his government protected monopoly to remain insulated. Unfortunately for him the market has come calling and creative destruction is doing its thing. Even Freidman’s new crony buddy, Mayor DeBlasio probably wont be able to save him.

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Anti-Uber protests in Europe, Taxi drivers pose as customers, then beat Uber drivers

Think about how “friendly” Paris is. Then consider how “friendly” Paris taxi drivers are. Then consider how “friendly” said taxi drivers are likely to be to someone they see as taking their job.

Sometimes cronies wear pinstripes and sometimes they drive a Peugeot.

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Why would Bowling Green officials make it harder for college students to get a taxi home from a bar or party? (Video)

The old taxi companies are having a hard time adjusting to a more competitive marketplace. Companies like Uber, Lyft, and Greencab are offering high quality service at lower costs to consumers than traditional cab companies. As such the old companies have sought refuge in city halls across America. Where there were no barriers to entry the cab companies have sought to erect them. Where there were some already they’ve tried to strengthen them.

Pretty much textbook crony capitalism.

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New York Taxi Mogul, Seeking a Bailout, Says He’s Too Big to Fail

The taxi industry is in decline thanks to the likes of Uber, Lyft, and other similar companies. The long time crony arrangements cab companies have enjoyed for decades around the world are falling apart. The market has gotten a taste of the higher quality and in many cases lower prices of ridesharing companies and it likes it.

But one shouldn’t expect an industry built on cronyism to go down without a fight and in the attached article we witness another scrap in the shadow of impending market doom.

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Uber in San Francisco is bigger than the taxi industry is or ever was

Uber has been fun to watch. And even though the company did hire a crony of its own recently to deal with urban politicians looking to shake down the company, Uber is still a very good free market story. It’s busting up government sponsored taxi regimes in cities all over the world and generally providing a much higher quality product than the old taxi companies were. It’s putting the heat on politicians and transit unions. (When the BART workers struck last year it was Uber and similar services which came to the rescue of commuters.) It is creating value.

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Taxi companies want you to pay more and to have lower quality service – simple as that

I think at this point I may just have to avoid taxis all together. It’s probably worth it to go out of my way to use services like Uber and Lyft. Thing is, even with all the crony capitalism, with all the inside dealing, the licensing, etc., I probably still won’t have to go out of my way to get a ride from Uber or Lyft. You know why? Because the ridesharing companies want my business and respect me as a customer.

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Sting operation targeted Uber and Lyft drivers

The fight against people trying to make an honest living and against customers who want a higher level of service continues on in Austin Texas. The taxi industry knows that their business model makes no sense these days so it is trying to regulate its survival. Across the country cab companies are leaning on their contacts in local government to make life as hard as possible for Uber and Lyft. And of course for you and me too.

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Uber having to hire David Plouffe is all that’s wrong with America

As we said yesterday (and many other days) it is pay to play in many parts of our overly politicized economy, and Uber (the world’s leading ridesharing company) wants to play. That’s why it just brought on a high powered consultant formerly of the Obama administration to smooth things over with the other rent seekers.

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NYC Taxi & Limousine Commission agent seizes car of volunteer driving cancer patients to hospitals for free

I was actually talking to a board member of the taxi association in a large city last night. An interesting and surprisingly young guy, he made a good case for his group of drivers who have been hurt by companies like Uber and Lyft.

He and I fundamentally disagreed on the best direction for the taxi industry but the conversation was of high value, many specifics, and thoughtful responses.

I imagine such an exchange with the New York Taxi commissioner would not have been as cordial.

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How taxi cartels resort to desperate measures to kill innovation and save their crumbling industry.

We have followed Uber at ACC pretty much since its beginning and we are fans. This is capitalism at its best, taking down monopolies and the crony capitalists who have constructed the monopolies in partnership with city governments.

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