Taxi VS Uber

[khattichic]

Re: Taxi VS Uber

What are medallions? Sorry, I know nothing about the taxicab business :sid:

[TLK]

Re: Taxi VS Uber

@Muzna

I know nothing about this industry and the regulations that govern it. Help me understand…

Why is it so difficult to get a medallion?

Muzna, medallion is a permit city issues to drive cab in that city. NYC hasn’t issued new medallions in years, in fact probably decades, that took the price of medallions above half a million dollar. In fact, investing in medallion is more lucrative business than real estate in NYC. A friend of mine bought in 2006 for $300k and in three years, it was worth $800k

Read this article please

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[SID_NY]

Re: Taxi VS Uber

@khattichic

What are medallions? Sorry, I know nothing about the taxicab business :sid:

Consider it like a license to have you the ownership of cab. I just dont know if a single medallion holder can have one cab only or more.

[queer]

Re: Taxi VS Uber

sounds very un-free-market-like and definitely unamerican. do you want to get your job because you can pay a ton of money or because you can do a better job for the clients? lets take some freedom to these cities. boycott these medallions and ride uber. :k:

[Southie]

Re: Taxi VS Uber

@TLK

Muzna, medallion is a permit city issues to drive cab in that city. NYC hasn’t issued new medallions in years, in fact probably decades, that took the price of medallions above half a million dollar. In fact, investing in medallion is more lucrative business than real estate in NYC. A friend of mine bought in 2006 for $300k and in three years, it was worth $800k

Read this article please

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Was there a dividend yield in addition to capital appreciation

[Southie]

Re: Taxi VS Uber

@khattichic

Same here...we're a big Uber family. My husband had to catch a flight out of town the same night as our son's band concert....taxis are not that common here in Dallas but Uber is godsend...he got picked up from the school in minutes and was on his way and I didn't have to worry about leaving early to drop him or him missing out on the concert nor did we have to hassle with taking two cars and then him using park and ride.

Did the fat lady sing?

[us1415]

Re: Taxi VS Uber

@SID_NY

Consider it like a license to have you the ownership of cab. I just dont know if a single medallion holder can have one cab only or more.

Its one per car. This is how they look on a car’s hood.

[Muzna]

Re: Taxi VS Uber

Thanks TLK. That article was helpful.

[quote]
"The medallion prices have come down," he said, "but to be honest, they were too high in the first place."
[/quote]

I guess what I still don't understand is why the medallions cost so much to begin with. I suppose it would help to know what the income is from a single taxi and what the cost is to run one. (I remember a family friend got married several years ago and the wedding gift she received from her husband was a medallion. )

[S_Punk]

^ Better to think of it as city/gvmt property rather than license. They're limited, i believe, and that's partly why they're so expensive.

If someone owns a medallion they can lease it out to drivers. Depending on the model/make of your car... lease can vary between $600-$1000 per week. The driver(s) have to pay this amunt no matter what every week. Idk how much maintenance etc would cost though. Cars ussed as taxis require a lot more work esp considering city regulations as well.

[mahool]

Re: Taxi VS Uber

@us1415

Its one per car. This is how they look on a car’s hood.

This is the shield which require on cab car hood. Uber model is really threatening to their business.

[TLK]

Re: Taxi VS Uber

@Muzna

Thanks TLK. That article was helpful.

I guess what I still don't understand is why the medallions cost so much to begin with. I suppose it would help to know what the income is from a single taxi and what the cost is to run one. (I remember a family friend got married several years ago and the wedding gift she received from her husband was a medallion. )

More to what S_punk said, in big cities, any cab car would run 24 hours, so in a city like NYC, a cab could make few hundreds a day. Of course that means 2 or maybe 3 drivers share that cab, as one can't operate it 24/7 on his own. My guess is in NYC, a cab could easily make four five thousands a week, maybe more. That is why a medallion is so expensive. Unfortunately, because those few thousands need to be distributed amongst 2-3 cabbies, it does not end up being a huge amount per family, in a city like NYC

[Muzna]

Re: Taxi VS Uber

@TLK

More to what S_punk said, in big cities, any cab car would run 24 hours, so in a city like NYC, a cab could make few hundreds a day. Of course that means 2 or maybe 3 drivers share that cab, as one can't operate it 24/7 on his own. My guess is in NYC, a cab could easily make four five thousands a week, maybe more. That is why a medallion is so expensive. Unfortunately, because those few thousands need to be distributed amongst 2-3 cabbies, it does not end up being a huge amount per family, in a city like NYC

So....wouldn't those guys make better money driving their own car with Uber?

[us1415]

Re: Taxi VS Uber

@Muzna

So....wouldn't those guys make better money driving their own car with Uber?

In theory, yes but with Uber the market is even more saturated since Uber decided it would flood the market with regular people with cars.