Taxi Medallion Price Plummet: Unfair Competition or Underlying Reality?

business_ethics_highlights_2The taxi medallion system was viable only so long as willing ride-givers and ride-seekers could not identify each other easily. Now that they can, it appears the taxi industry’s profitability is built on its cartelization, not its value creation. Appeals to fairness and to safety look more like smokescreens intended to obscure this fact. >>>

Once a sure bet, taxi medallions becoming unsellable

Cabbies around the country complain that drivers for services like Uber, which use a smartphone app to connect riders with freelancers using their own vehicles, are disrupting the market and playing with an unfair advantage.

Medallion owners also grumble that rideshare services in many markets aren’t subject to the same rules of the road. Uber’s contract drivers don’t face as stringent vehicle inspections, their drivers aren’t required to obtain a chauffeurs license, and they can adjust their fares based on demand.

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