Why NYC Taxi Drivers Are Drowning In Debt - NYC Revealed
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- เผยแพร่เมื่อ 16 มี.ค. 2022
- The yellow taxi cab is the quintessential New York City ride. What started as a small fleet of cars nearly 100 years ago, has turned into a bustling system of thousands of yellow taxi cabs. But now the threat of ride-share apps and city scandal has left cab drivers in thousands of dollars of debt.
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Oh no my curiosity is streaming 🙀🙀🙀🙀🙀😱😱😱😱😱💄💄💄💄💄
taxi drivers didn't care about their customers before. horrible treatment. now they have to care 😄
@Shawn Allen why not. They are professionally creative and you’re just critical lol
you don't need subtitles. i understood him clearly.
They deserve that💁🏾♂️💁🏾♂️💁🏾♂️you know why , because before Uber and Lyft they didn’t want to get out of Manhattan….they basically told you to get out of the cab if you were going to the Bronx or queens 🤨🤨🤨🤨🤨🤨🤨now they go anywhere…thanks to Uber
One major thing not really mentioned is - this medallion system was implemented to limit the number of yellow cabs on the streets. It kept competition down, but it also made the licenses worth a lot (some people would have one license and rotate 3-4 drivers so that their car/license was on the streets 24/7). Yellow cabs were the only cabs you could hail (ie on the street you could just decide you wanted a cab and stick up your hand and say "yo taxi!"- for other car services you had to call and pre-arrange so that was why there is a premium for a yellow cab license. Then ride share apps appeared - and were for the most part unregulated. They, via the app, could effectively be street hails and created a huge supply of 'hail-able' cabs. You didn't need a medallion, just your own car and the app. That is why the value of those licenses plummeted so much, so quickly. It wasn't exclusively due to covid.
Very interesting, that makes a lot of sense!
But I’d rather blame government and banks.
@@coryholt Everyone in the city saw this coming, and the government did literally nothing about it until 9 folks killed themselves. So yes, they are at fault.
@@Sonicfan138 I think its a bit more complicated.
NYC was stupid to let people speculate on medallions for so long. It should have been a yearly filing fee with a waiting list similar to how street vendors work. Most of the medallions were owned by hedge funds trying to make money renting them out. They pumped the prices to a million dollars then dumped on the poor drivers that self owned. =( Now the city is spending millions to bailout these drivers from shady interest only loans. I remember watching the market fall in 2008 but medallions kept going up. Yes that seemed shady. Commercial real estate did the same. You can see how many empty storefronts we have again just like in 2008. Who can pay 20k a month and have a profitable restaurant. Even before covid they were starting to close up.
Paying nearly a half a million dollars just to drive a cab where you can retire with that much money in other places in the same country is insane to me
Most of them didnt had the cash on hand and took loans/mortages, the whole thing is a scam...
@@andriuspriebbnow4626 good point. I hadn't thought about it that way. I don't know why but in my mind was cash in hand (practically) for it.
the thing is man, isnt it greed? they bought it for 410k and 700k believing they could sell it one day for double or triple the price. no one feels bad for them when they were selling a taxi driving medallion for over a million bucks. they got in and got out, while you held on, almost like stocks lol
Cringe if you think you can comfortably retire on only half a million anywhere in America
@@andriuspriebbnow4626 Obviously they didn’t have the cash on hand. How would an average taxi driver have 350k cash?
One time while in New York, I tried to hail a taxi to JFK from downtown Manhattan in the early afternoon. One taxi driver after another refused to take me there. After an hour of getting rejected by numerous taxi cab drivers, I was nearly in tears. Luckily an Uber driver agreed to take me to JFK. Next time I will not assume that taking a taxi is a reliable method of transportation in NYC.
What was the point of that sob story ? They may have already had passengers. Call ahead or just use Uber to start with 🤦🏽♂️
@@CocoBaby87 the point was to show why Uber and Lyft are preferred by the customers, and therefore beating the taxis.
It’s more expensive getting to jfk for Manhattan via Uber/ Lyft. Drivers are not gonna take you out there if they know they’re gonna make more money picking up passengers who want to drop off in Manhattan. They also know that it takes you 3 minutes to call Uber/Lyft. So there was no reason to wait 1 hr. Maybe an annoying 15 minutes searching for a lucky cab driver if you wanted to save money. But Put yourself in their shoes and figure out what decision you would make if your goal is to make the best business decision. Obviously you’re not going to do what’s not gonna bring in money.
@@N_zoss It is illegal for them to turn down fares like that. It's kind of dumb in this case too because they will definitely pick up another fare at the airport. Regardless, if it's still more lucrative to drive only in Manhattan, and Uber and Lyft are willing to take people to the airport when yellow cabs aren't then I guess they don't have any reason to complain. And really, if you can't get a yellow cab to take you to the airport, what are you supposed to do in that situation? Uber and Lyft will continue to thrive because of situations just like this one.
@@N_zoss You keep justifying poor service, meanwhile, these drivers will most likely starve to death before those medallions are forgiven. Many will be incorporated into the Über platform which should provide some relief for some drivers, but more importantly, force a reality check. It is not the job of the customer to satisfy the entity offering mediocre-to-straight GARBAGE service that you have the nerve to charge a premium for, and then demand a tip in exchange for things...you know, like unlocking the door, or releasing luggage from the trunk...
If you managed to collect $400k+ in 2014 or later, and instead of doing ⚡️⚡️⚡️⚡️ANYTHING⚡️⚡️⚡️⚡️ else, you instead took that money and bought yourself a bag of Professor Copperfield's Magical Legumes in the form of a piece of tin stapled to the hood of your car...💀😭💀
Imagine being an immigrant and having the possibility to have +500.000$ to start a business... why on earth would you go for taxi driver ?
Strange no ?
well on the upside- he deleted himself from the asian gene pools
@@LucielStarz123 i don't get it.
@@videojeroki it's suiclide joke
this is true. the main thing i guess is because they allowed the predatory loans to happen because they were getting a medallion that was worth that price to resell at the time. I doubt normal banks that would give business loans would have given them that much for a business venture. Here the idea i guess was if it wsant working they could resell and recoup cost but that didnt happen.
I agree though, it was their choice to do, there are/were plenty other options to make good money with free courses online for all kinds of jobs.
@@LucielStarz123 Nationality-wise & IQ-wise...
Making a license to drive a cab $400k is criminal. I'm a mortgage broker, I can process transactions of millions of dollars and my licensing fees in florida are about $1.5k
Naw it’s not Criminal if I make Taco Bell cost $400,000 and dumb ass people keep buying it , it’s on them . it’s not a crime to take dumb peoples money. This wasn’t predatory some aspects were but this was mostly dumb. A half million to drive a cab. I’m sure the average 8th grader would think that sounds dumb but in a city as large as nyc you’ll find SPO (stupid people Opportunities)
Yep city to blame as well as the folk who paid it thinking it was an investment
@@user-te1le7ck6b Why blame city??? So blame WallStreet for high share price of Amazon?? Stfu
Who's forcing them to buy. They can retire with that kind of money. The city dint fail them, they failed themselves
@@dzordzdzordzinjo1840 yes that’s actually what they do , then they stock split to help stabilize the price and enable more growth. They just actually did that because it’s hard for people to invest in your company when a single share is 400k (I’m looking at Berkshire Hathaway now lol they need to buss it down) splitting the stock then enables cheaper shares and more investment. Not that they need it. On a side note Tesla is planning the same thing, a stock split to reduce shares , grow investment and combat the short seller (hedges) and day traders (mostly banks) from effecting stock fluctuations. Elon never agrees with the stock price up or down lol but excuse my tangent . We’re just make complicated answers for stupidity there’s no reality that 400k on a cab “License” not the cab , not the whole business, not a game but practice. We’re just talking about the license 😂
So they were ok with the system as long as medallion prices kept going up, and now we're supposed to bail them out? I guess that's the ultimate American dream, to get paid for your mistakes.
So the american dream is:
1) participate in a ponzi scheme
2) selloff before the bubble bursts
3) if you didn't selloff, beg government for a bailout
4) profit
@@digitalpetor but how is that a Ponzi scheme. There’s a fixed amount and no one’s recruiting ppl.
@@milanchacko2095 maybe you're right. But they still participated in an obvious scam, hoping to resell the badge for higher price without it creating any more value. Isn't too far from it
@@milanchacko2095 I feel like the worst thing about this whole situation is that banks would freely give you a loan big enough to open 2 Starbucks franchises for a permit to operate a taxi
I bought some stock I wanted it to rise but it fell someone needs to reimburse me
I went to NYC for the 1st time in 2010. I hailed a cab but the driver was impatient with me when I struggled finding the address on a business card. He droved off on me without saying a word for someone else half a block away. I have no remorse for taxi drivers.
😂😂 don't take it personal it's just new york
Before Uber/Lyft, it was close to impossible to get a yellow cab in the afternoon. Cab drivers would ask you where you were going and most of the time they would deny you a ride. I bet they’re regretting that now. When the writing was on the wall with all the cab competition, cab drivers fought to raise fares instead of being competitive.
Would you not fight to earn a better living or do you truly believe that the Musks and Bezos' are the only ones allowed a decent income and al others are on this planet just to slave for these parasites?
They are trying to make a living
Suppose you want to make some repairs to your house and you say you can pay this
Do you understand it when some company says we can't do this at that price?
Same issue everywhere
These cabs are a very, very easy target for criminals - they carry cash, they have no clue who they are picking up. They are asked to go to a deserted area and then it rape, robbery or worse!
Uber/Lyft don't have this problem - first, no cash
Second they know who they are picking up and where they are going
So sometimes you are going to a deserted area and you might find even Uber/Lyft a bit late in arriving that is because if a Uber/Lyft driver thinks it is uneconomical they don't have to come pick you up!
You are not angry because you don't see them!
Crazy, huh?
@@ramaraksha01 What are you blavering on about? Cab drivers charge per mile as per their meter, so it doesn't matter if they are taking me to Brooklyn or timbuktoo the cab drivers will still make the same $ per hour. If it is twice the distance then they make twice the money.
@@giles4565 I am talking about safety - they don't want to go to certain areas because they are not safe
Cab drivers have picked up passengers, who give a remote address and once there stick them up and have robbed them
Also some areas they may not get a return fare - so basically the distance is doubled for them for half the fare
Which is why almost all cabbies are happy to drive you to the airport or any busy area, because they know that they can pick up a return passenger
@@ramaraksha01 They are trying to make a living...fine. So I will take Uber to places the cabs won't. What else am I supposed to do, walk? Also, if cab drivers continue to refuse me service, forgive me if I just abandon them altogether. By refusing fares like this, they are making themselves less competitive. Finally, a home repair person can turn down a job if he wants. Cabs are regulated and not supposed to turn down fares. They can lose their hack licenses if they are caught doing it enough times
Somewhat partly, taxis brought this onto themselves. They refuse to drive to outer boroughs (although it's illegal to refuse) and Uber was god-send for people living out there. And Uber made a compelling and valid argument that they need to serve these people who need a ride to outer boroughs. And how often do these taxi drivers tell customers that the credit card machine is broken and they need to pay cash? Uber simply solved all that.
That has nothing to do with the fact that they had to pay up to a million dollars for a medallion that was controlled by the city, and then the same city allowed an infinite amount of rideshare drivers on the road. The city is to blame.
@@politcallycorrect5816 I just think the city had to let infinite ride share because the taxi cabs were not doing the job as required by law. That is to say they have to drive anywhere within 5 boroughs. Uber kept on making that argument. And once city had to agree because there were so many people siding with Uber on this based on experience. If taxi cab drivers actually drove people to all 5 boroughs, I think the city would have said Uber doesn't need to exist in NYC.
@@milkcake81 I agree taxi cabs weren’t doing their job. They also were a lot that discriminated against black and brown people (even the black and brown drivers) which is why ridesharing apps are great. However, the lack of service was caused by the monopoly created by the city. Why did they go from limiting taxi cabs to to unlimited ridesharing. Also, NYC tried to stop uber, but couldn’t.
And now, if you want to Uber to outer boroughs, it's 80 dollars, enjoy
@@hjer731 not sure if that was sarcasm, but at least there is an option. For one, the company pays for it anyway so any reasonable amount of money was never issue for some people.
Medallion owners: "We were scammed into signing predatory lending contracts that we didn't understand."
Student Loan borrowers: "First time?"
It’s always someone else’s fault.
@@kennethyoung1164 because it is
Because it is! The whole system is a Ponzi scheme. Look at who writes the laws in this country! It’s lawmakers who later become part of the board of a corporate firm. Tax havens, loopholes… no need to say more than the fact that treasury secretaries have worked at Goldman Sachs.
Try to have empathy. I know it’s hard for privileged and lucky people like you to see how unlucky others can be. And no, hard work doesn’t get you to success without luck.
@@boomboom1139 no, nobody forced you to take the loan. If you do not have the money for college, there are plenty of ways to earn to pay for college.
@@boomboom1139 federal government pauses the payment for months and they still blame the system.
Similar story here in London - pre Uber, drivers would often refuse fares outside the city or going south of the river, it was unusual to find a cab that would accept card payments, and the rates were high, especially at night.
Fast forward, and although the taxi drivers and their union have fought Uber every step of the way, they have adapted their service to survive. Every cab now has to have a card machine, and their prices are often better than Uber because there is no ‘surge pricing’ with cabs. No doubt some drivers have quit in recent years, but there’s no shortage of black cabs. So in short, ride hailing apps made the existing business look at itself and modernise.
Imagine that, the capitalist system forced them to compete that much harder! About time. Seems like the NYC cabs just want to fight Uber and protest at city hall rather than adapt. These NYC drivers want ridesharing to disappear and go back to the way things were, well that is NEVER going to happen. Uber has been banned in some places, but then another ridesharing app comes along in their place - there's Lyft, Sidecar, Gett and others - the concept is just too good to not exist.
Competition drives better and cheaper service/products. It's the reason capitalism works
@@bigsmall246 Couldn’t agree more, who remembers the 70s? Pepsi and Coca Cola nearly bankrupted themselves by competing against each other selling cans for 3 cents. They then reached a deal to consistently rise prices together and since then they’ve both beaten the system.
@@bigsmall246 You are absolutely correct.
Perfect result! Uber are awful, they need to pay their drivers more (enough to live and pay for the vehicle) but some taxi drivers aren't exactly helping themselves. Last taxi I took in London took the piss, driving slowly all the way around the building we were going to, to increase the fare by a few £ instead of letting us out!
if you still driving a regular cab in this day and age, riding around waiting for someone to throw their hand up then you're a damn fool. and if you invested in that medallion you're insane
Sounds like they had a stupid system to begin with and all it took was competitors to put the business down.
Competitors with deep pockets to take losses to acquire business and politicians with personal financial interest. It’s not a secret that Uber didn’t even turn a profit until last year. They were propped up by investors who threw money on the premise that they could undercut existing workers before jacking up the prices. Former mayor Bloomberg had private holdings of medallions because of their steady profitability before selling out to allow Uber and Lyft into the city.
Artificial competition.
Uber and Lyft aren't that sustainable of a business and you'll notice their prices are increasing and in many cases reaching what taxi fares. Will be interesting if the difference between taxi and Uber/Lyft will just be app technology (which is still alot I admit lol)
Born and New Yorker here. That's exactly what it was. The system was (blatantly and obviously) corrupt for decades, and the customers despised yellow cabs, due to the godawful service and absurd prices. Yet, they were the only ticket in town for decades if you needed to get somewhere public transportation either didn't go to in timely and convenient manner, or just didn't go to at all. Uber and Lyft decimated them after a few years. I rarely ever used yellow cabs (because they sucked), but I did use ride sharing back in the early/mid 2010s more than I ever used yellow cabs. Honestly, I could care less about the woes of medallion cab drivers. Karma is a bitch.
@@shinbakihanma2749
Exactly how I feel. These guys were just whoring out their medallions in the expectation that they flog these things for more in the future. Did any homeowner before the 2008 crash get any of their money back when the prices of their homes sank? No they didn't. Tough luck guys, welcome to the free market.
The big issue is that the cabbies themselves had zero fault here. This was just the system. You had to buy a medallion to drive a cab, and the limited number of medallions meant they went up in value on the secondary market - retiring cabbies would sell their medallion to someone else so they could drive.
And this went on for so long, the idea that they went up in value just became an established fact. Cabbies relied on this increase in value as part of their retirement planning - they'd take out a loan on the medallion the way you'd take out a loan to buy a house. Then they'd make enough money to pay their daily bills plus the monthly payments on the loan. They wouldn't put any money away for retirement because selling the medallion was their retirement plan. "When I'm ready to retire, I'll make half a million dollars profit selling my medallion, that's my retirement fund."
Just like many people do with a house - they buy a house with a mortgage, expecting that when they retire, they'll sell the house for a profit and buy a cheaper home to retire to and still have money left over.
Imagine if the housing market suddenly crashed 90% because some company started offering plenty of perfectly decent housing for a monthly rent that is 1/10th the going price of housing? And that they had *MORE* than enough housing for it, suddenly appearing out of nowhere? Suddenly, all those people who were expecting to make $500,000 profit selling the house they'd been in for 15-20 years and still have $200,000+ debt on have a house that's worth $50,000, and they can't sell for the amount left on their mortgage? (Yeah, not a perfect comparison, since housing doesn't just suddenly appear out of nowhere the way "people who already own cars" does for Uber.)
This video totally ignored a MAJOR factor in this problem: the drivers themselves. For years They refused to drop people outside of Manhattan, they didn’t want to drive in the rain, or too late at night. All it took was a wind of competition with Uber/Lyft and the house of cards fell.
Don't forget for some strange reason they decided the best time to change shifts was between 5-6 pm when everyone was getting off work in.
Yellow taxis were famous for not stopping and exluded competition for a long time. Then competition like Uber came along. The medallion owners hocked themselves to the eyeballs when the prices were clearly unsustainable.
Virtually every single cab driver you stop has been threatened a few times a year. Those working night shifts risk their lives and are often not paid but customers wanting free rides. So…..logically it makes sense for cab drivers to not want to work late shifts
@@johnwright9372 don't forget that they were violently destroying their competition. that's the tid bits that get forgotten so easily some how .. the physical battery
Would LOVE to ask some of the drivers in this video how many times they ever refused to take a passenger (even though it was illegal to refuse taking them) because they weren't going somewhere else in Manhattan, something that isn't an issue with Uber or Lyft. Also would love to ask some of the drivers about the times I've been out in Queens or Brooklyn, it's late at night and raining, too far to get to a subway station and there's not a cab in sight - what am I supposed to do exactly?
Exactly. And now they’re all crying about it. That’s karma for those cab drivers.
This same concept happened in many other countries, including mine. Cab drivers were quite privileged and picky, now they're crying sheep
Cab drivers know that you’re likely to take Lyft or Uber outside of Manhattan…..they’re market is within the city.
@@N_zoss I would quite happily take a cab to Manhattan, it doesn't bother me. No reason for Cabs to refuse because it isn't 'their market'.
@@N_zoss But will they drive out to another borough if you get in one in Manhattan? They often have refused to do it, or did it very reluctantly in my experience. Only now, with Uber and Lyft forcing them to compete, are they becoming more accommodating. Karma is a bitch.
No offense but this is why you have to keep up with the trends and ADAPT.....He who adapts survives in business.
True!
It’s always easier said than done.
@@immanuelaisraeldaniel5537 but it’s possible if it wasn’t no one will adapt.
Facts
@@immanuelaisraeldaniel5537 yes of course that's how it's supposed to be. It's not easy to adapt but if you don't you'll die out.
This system sounds broken from beginning to end. Pay an insane amount of money for a glorified business license that will one day be worth even more so someone else can overpay for it? Selling this as a good thing for the exploited workers who will ultimately have little choice to participate? Which organized crime syndicate came up with this?
Supply and demand. The city fixed supply, but demand rose, so the price went up.
Then suddenly the city allowed the market to be *FLOODED* with alternate supply.
Most cities historically restricted the number of taxis that could operate - but many cities didn't allow you to sell your medallion - so they weren't "investments" to re-sell. It was purely "when someone retires, they grant a medallion to the next person on the list." But in the cities that did allow it? They naturally became investments. And the cities themselves also took advantage of that - charging more for newly-issued medallions so as not to upset "the medallion market". To the city, it really didn't matter how much a medallion cost, but if "the market" says they're worth $750,000, it would be both unfair to the existing medallion holders to charge only $100 for a newly issued batch, but also a great way for the city to earn tons of extra money charging "going rate" for them instead of a simple business license type fee.
That's one reason why many cities tried to block Uber/Lyft as long as possible. The combination of crashing their medallion market *AND* losing tons of revenue from newly-issued medallions.
They owned it and could sell it for more
The government of course
U just described any type of investment lol. U pay what u think it’s worth and hope it continues to go up to sell at a profit. Not saying they weren’t put in a bad situation but it’s an investment. Nothing wrong with the idea of it
@@darkwing3713 grew up and from NYC nowadays it’s much easier and safer to use Uber because they are easily tracked and contacted unlike cabs so u can keep an eye on ur kid. Plus they r almost always way more clean and u can easily call one to ur exact location without waiting on the street with ur hand out
I live 15 minutes from the GWB. I'm in NYC often, and before Uber/Lyft, yellow cabs wouldn't stop for me. In the winter, with my face covered, I could maybe get one to pull over, but they would often pull off on me and say crap like "No Brooklyn!" And on the occasion I was able to get a ride, I'd get charged an arm and a leg. Same with car services in NJ. They would charge ppl ridiculous prices to go somewhere local. So now I'm supposed to feel bad for them!? Call me heartless, I guess, but I don't feel bad for them anymore than they felt bad overcharging me or pulling off on me in the rain and cold.
I never been in a taxi before! From what I've heard from people, two common complains are taxi smells bad and they rip you off? Care explain those 2 things for me?
@Trueconservative16 Both statements can be true. Sometimes, the car stinks, other times, I've suspected the odor came from the driver. Sometimes, the price is reasonable, and other times the price is outrageous. Mind you both situations the destination is the same.
@@trueconservatie33 sometimes they eat and sleep in their cabs. As far as rates go, "mistakingly" taking a right turn instead of a left will affect the fare considerably.
@@IvanDiazpalbatey isn' t there law against that?
@@trueconservatie33 no...unless you're paying close attention and if it happens ask the driver to stop the meter, whatever the meter reads at the end of the ride is what you owe. These days the best thing is to activate your GPS on your phone whenever riding in a cab (Uber and Lyft included).
We had a similar thing in Dublin, Ireland. There was a strictly limited number of licences issued, under 1,000 for a city. The plates traded for huge money even though they originally cost nothing. Then one day, a case was taken in court based on competition law. Suddenly anyone could get a taxi plate and the value dropped to nothing again. Not good if you had invested, but now you can get a taxi any time. By the way, Uber is not legal here.
I don't think it should be legal anywhere
Q: "Why NYC Taxi Drivers Are Drowning In Debt?"
A: They speculated on a highly volatile asset hoping to get rich and now they want a bailout for their own bad investment.
Everyone is quick to blame Uber and Lyft but the system was broken for decades. NYC was the bubble that wouldn't pop and now drivers are paying for it. When the market crashed 2008 the media was saying owning a taxi medallion was a hedge against inflation. Then boom people would buy them up and rent them out to drivers. This made it very expensive for a driver to own his own medallion. Then a few years later boom they were a million per. Then the rug got pulled. Loan officers just like in 2006 real estate bubbble lied to new owners. Said they can buy a medallion for 800k make their 40k or whatever a year then when they retired 20 years later make their money back by selling to the next young driver. Meanwhile TLC license fees, plates, insurance, repairs, need to keep your permits and car always updated. So nobody wants to get in this business anymore and therefore medallion prices under 80k . Only in NYC can you overcharge people for a ride and still not even make money yourself. $60+ to get to the airport only a few miles drive. If you are smart enough to move out of nyc and make it, then you can make it anywhere! I do feel bad for this guy....but let us not forget back in 2006 if you wanted a cab to Brooklyn most would kick you out and not take the fare. Why alot of us ran to uber when it first launched!
Like how big shops killed the small neighbourhood tech shop. These days the big shops get killed by the internet and complain.
I'm glad you're mentioning this. I'm happy this is happening. As a born and bred New Yorker, I remember how scummy yellow cab drivers were decades before ride sharing came along, and destroyed them. They operated like The Mafia, and treated the customers like crap. New York is one big scam.
@@shinbakihanma2749 Some parts were probably mafia controlled back in the day :D
invest everything in one investment egg and cry after value of that single investment crash... People never learn.
@@mrn234 Wouldn't be surprised. my thing is that these medallion owners/drivers were in on the scam 30-40 years ago when they had things on lock. Now, things are downright awful, and just NYC are being pinned as the culprits. These same immigrants who are now whining, would've been in on the scam laughing all the way to the bank, because they WERE making a LOT of money from their investment. A lot of drivers who owned medallion cabs WERE able to make a ton of money pulling the scam, renting out their medallion cabs to drivers. That's why medallions were eventually valued so high. Kenny Chow would've been in on the scheme had he been in it 30 years ago, but now everyone is crying victim and solely blaming NYC because that's just how the scam goes when those who are in on the scam are no longer eating.
I feel bad for the drivers with such debt. The system failed them. I however have no interest in going back to the non-uber/Lyft age. I remember taxi drivers refusing to take me to Brooklyn. I remember drivers speeding away from me like a pariah. I hope it works out for them and some financing or debt restructuring can happen for them. The stark biase and ignorance of how they treated non Manhattan residence , especially those of color definitely makes me a fan of Uber/Lyft.
Did you take a cab???
some people feel fine with a victim mentality.
@Marcelino Hervias everytime I visit NY I take a cab. It cost me Hella alot but I know I'm helping people out. When I go to the store I use a cashier, when I get my flight I go to the counter. This is costing me a lot more both in time and money but I'm know I'm fighting for jobs.
@@marcelinohervias1737 huh ?? The question about have I taken a cab ?? And about victim mentality ? Was that questioned directed to me or was there a comment deleted that I don't see?
@@marcelinohervias1737 No he just made all this up so you would feel sorry for him and give him internet upvotes. /s
Exactly! Thanks for sharing!
Wow! That man saved up $700k to pay for a license to drive a cab! For that kind of money, I would have moved out of New York and started a different kind of business elsewhere. The cost of living and taxes in New York are entirely too high.
he didn't save it, he probably borrowed the majority of that money and presumably the bank lent the money because the value of the 'medaillion' kept rising.
@@lejazzetmoi1775
$700k to drive a cab? In New York! Think about that. That’s crazy! It wasn’t worth it. It will never be worth it. Driving a cab as an owner/operator in New York is extremely expensive. The operational cost and cost of living in that area will eat into any potential profits one can make. If he was going to borrow $700k to start a business, he could have started something that was more prestigious and more profitable. He borrowed nearly 3/4 of a million dollars to buy a medallion to drive a cab. Last time I checked, even with a medallion, cab drivers aren’t exactly raking it in. Now he’s stuck driving, he’s upside down on his loans and in debt, and he’s not making the money he thought he would. What’s even worse is that he has so much debt that even if he wanted to abandon the cab and do another business, he can’t. He owes too much.
I’ve driven a cab before. While it’s a decent job that pays relatively decent money (but you’re not going to get wealthy doing so and you have to work many hours) it’s dangerous and it takes up so much of your time, you can’t really plan to do anything else.
Sure, he’s in business for himself but driving a cab is still something I like to refer to as a low paying job with a huge time investment. So basically, he paid almost a quarter million to be his own boss at a low paying job that consumes all of his time.
He had the credit and good reputation to borrow that much money. He would have been better off moving out of New York and opening a factory that makes pants hose! I’m being sarcastic here, but anything would have been preferable to borrowing $700k to drive a cab! In New York!
700 thousand for a taxi medallion is the height of insanity & I thought medical students going into half a million or more to become doctors are crazy 🤦🏾♂️🤦🏾♂️🤦🏾♂️
Hard to feel bad for cabbies when they treated people like garbage before the ride share apps came and showed people you don't need to get into a disgusting car to get home when someone could pick you up in a modern camry or something and take you to the destination without saying a word.
My question is how tf can that medallion be so fkn expensive imagine paying 400k then on top of that taxes every year on top of the money your making you will never get out of debt smh
@@bostongorge3507 Welcome to 🇺🇸
@@bostongorge3507 they went in knowing it was a scam and then cried for the government to give them a bailout.
@@makatron I understand your frustration with how SOME cabbies acted back in the day. Plenty of cabbies who were complete assholes, driving right past me and so much other stuff. However, I would argue having bad experiences with some cabbies does not mean you should have zero sympathy for a rough situation.
The point about the quality of cars is very true. Not only do I have more options for cars with rideshare apps, people keep their cars in relatively good condition if they want to keep their reviews up. Cabbies have no such obligations, and their cars are frankly disgusting
Some yellow taxi drivers are rude and honestly quite expensive, I remember taking a yellow 🚖 in NYC , they charged me like $90 just to go like 6 blocks away
What your saying doesn't even make sense, the price on the meter. You should've just walk the 6 blocks for free dummy
@Carlos: you took a taxi for 6 blocks, no wonder why your thought is like that! For 6 blocks…you should take a walk…you will be healthier and it will help to make you to be smarter too!
Most New York are rude, stop pointing fingers. The most rude people are people who work in office have no manners or human respect
😲🚕🚖
At least make your lie believable……
It's hard to feel sorry for Medallion owners who:
Bought at extravagant prices for greed
Rented them out like landlords and ripped off poor cab drivers.
Hoped prices will constantly increase.
I love how they have the politicians come out at the end like the good guys when really they are the cause of all of these problems😂😂
I can't imagine having access to $700K and spending it on something like a taxi medallion in NYC instead of a couple of houses somewhere in Arizona or something like that. Just buy $700K of Uber stock, or an index fund, or set it on fire, anything seems better than this.
I can imagine. Nobody had that money. You basically have a mortgage on appreciating asset that you can use to charge people overpriced cost for your services. And after you done making money on that you can sell your meddalion at appreciated cost and cover the loan with some profit on top. Meddalions were appreciating in value since 1937 up until Uber came around(more than 60 years). Hindsight is 20/20.
@@WTFIWFYDB Yeah, they had access to the money, that's what i said, and that's what a mortgage or whatever other sort of loan they got is. And any financial advisor would tell you to be more risk-averse and pursue a diversified investment strategy with 10K much less 700K. borrowing a ton of money to buy into a regulatory system of s country that you do not understand is an extremely risky thing to do, and they got caught in their own willful risktaking.
@@perfectallycromulent I wouldn't put my life investment into Uber, its really risky and there is a housing bubble that will pop in a few years so investment is never easy, but if you have a diverse portfolio you can get some stuff wrong, never put all your money into one basket because you will end up like these drivers.
@@and6sdf dang, how?
@@perfectallycromulent I don't think they would have access to that money to invest in diversified portfolio. And I have no idea how you would manage loan repayment by selling assets that you invested in using that loan. Was it risky - yes, do you overestimate that risk given you have information on current events, also - yes. Existence of current taxi apps in unregulated form and blind eye from the government on their operation is quite unlikely circumstances that happened to be true.
The whole thing was built on a house of card, it just that Uber and Lyft are the ones brave enough to crash it. Also remember how rude and expensive yellow cabs are pre Uber/Lyft, no wonder why New Yorkers flock to the app.
I remember trying to cab as a black person or trying to go anywhere other than Manhattan.
Queens to JFK for 50 or more dollars. Yeah they were so damn expensive.
Brave? They are exploiting a system without regulations, hardly “brave”.
@@jnnx don't be angry at progress it's tacky plus ur going to be left behind
Uber and Lyft is just the same price now. Uber and Lyft was competitive in the early days.
They knew exactly what they were doing. It has nothing to do with being an immigrant. It has everything to do with being stupid and not willing to stand up against the city for the medallion prices. Seeing a Taxi is like Seeing a dinosaur. They are a thing of the past. This just didn't happen over night.
as sad as it is, some drivers sold their medallions at the top and made hundreds of thousands in profits. I bet they did not complain then. There is an obvious risk to any investment. People should have some accountability for their actions and decisions
When the taxis PURPOSEFULLY go the wrong direction after you tell them how to go so it's the most efficient and cost effective way and yet they still "take the wrong turn," and having to take longer routes putting extra money on the meter, Uber and Lyft were the solution to the problems they created. 🤷🏻♂️
one time a driver tried to pull that and I flat out told him to let me out of the cab
Uber and Lyft are actually maffia style companies who twisted politicians arms into legalizing an illegal business, they show signs of racketeering.
Sorry but I've had corrupt lyft drivers drop me off, not stop the clock and drive for 5x more times the rate
@@doubletrouble5026 That could easily be fixed with a customer service call
@@growingprofits1817 I did that they were trash so I did a chargeback and didnt use lyft for years
I went to NYC back in 2013 and, true to the whole black-men-can't-get-a-cab-in-NYC stereotype, I couldn't get a taxi cab the entire 3 days I was there. I even walked up to a cab at a gas station in Queens and asked for a ride. He completely ignored me and my wife until we just left. So, I have the smallest violin in the world to play for the plight of taxi cab drivers in NYC 🎻
Oof man that's rough..
@@jamesfra1311 Yeah. It sucked. Rest of the trip was great though. Got a lot of exercise. 🤷🏽♂️
That's what I was thinking LOL LOL, immigrants love to be racist. It makes them feel like they're part of the family.... Until they realize that America does not see it that way.....
I drove to NYC a year after you visited and I found parking much easier than in South Philadelphia.
@@tommyaintgotnojob Philly's parking is terrible! Most of those East Coast cities have terrible parking... Narrow, circuitous streets that were made to throw off outside attackers and were pre-car
The medallions were a license from the city, not personal property. They never should have been allowed to become a speculative item that licensees could sell. There never should have been anything other than a fixed price set by the city. What happened here was a tragedy, not caused by Uber/Lyft, not caused by cab drivers who wouldn't go to certain places, but because the city failed to do its job to regulate the item it controlled.
The same thing happened in Australia. We even have a special agent to sell license and it become ridiculously expensive because the agent fees.
I was about to invest into this but luckily I change my mind after I attend a free seminar from a bank about future technology.
A lot of Taxi drivers back then were very rude, dirty, no short trip, etc and most of taxi driver are Indian students that work long hours and studying.
A lot of the owner don’t even drive the taxi and will rent the taxi to these student without a proper insurance and legal paperwork
The quality and cleanliness of course will drop because the students are just so tired to regularly clean it daily since they also need to study and earn a living at night time
The downfall of taxi not simply because of the new technology like uber but it’s mainly because of the driver attitude (Not all driver are bad)
It shouldn’t be the Tax payer’s responsibly to pay for government failure and investors’ mistakes
🤣🤣🤣🤣🤣best county in the world 🌎 we all know
Yes I agree with you and am not a fan of Yellow cabs, but if we can bail out banks and big companies I don’t see why we can’t bail them out.
😭😭😭😭keeep printing fed best country in the world 😭😭😭😭
I think they just extended there payment
@@MrDlbonano I don’t think any large company should be bailed out on public funds. I’m torn on historical small business bail outs because we lost most local restaurants in my town two years ago, but if we were never ground to a halt with regulation they would’ve been able to support the local economy.
i don’t feel sorry for them. there were times when people needed cabs and they wouldn’t stop, im happy that uber figured out a better system
And they purposely take the long way sometimes
uber underpay their drivers, uber loses money bc they paid drivers so much at the start but now they pay drivers like shit to try make their money back
@breadstickzzzzzzz really shows your true colours, you're ok with people being paid under minimum wage with no benefits because they are an "independent contractor"
@Baron Von Flop uber is cheap because they havent made any profits + those price surges are shit
@Baron Von Flop i think taxis are also bad but its just about the supporting a company who pays its drivers under minimum wage that is the problem
I love that they keep blaming Uber and Lyft for their loss of customers. Instead of playing the blame game, maybe lower your prices to match them or join them.
As a person of color, yellow cabs never stopped for me during the days before uber/lyft. I have no pity for them or there debts.
You know why they call it "The American Dream" right? Because you have to be asleep to believe it.
facts.
Where’s this quote from?
@@brickson98m George Carlin
@@brickson98m George Carlin I think.
@@kaymish6178 that’s who it was, yup! One of my favorite quotes. So damn true!
Yes I've been in those yellow cabs watching the counter go up up and away as we drove down the road. Their prices are too high. Yellow Cab is run like the mafia.
Jewish mafia?
I remember growing up in the early 2000's and for us the idea of ever getting a taxi was absurd. Getting a taxi was for a last resort in an emergency situation. They were always so expensive and such a hassle it wasn't worth it. But today with uber and lyft I won't give it a second thought to order an uber for the night out something I would have never done with the yellow cabs.
It’s also because you can afford it now, and you don’t consider your own debt for a second. For most people debt has grown faster than income but since everyone does the same you think it’s as it should be. You’re in a bubble yourself but don’t even know it yet.
@@pflaffik What does that even mean? It’s not about debt or some shit, it’s about how the introduction of Uber/Lyft has brought new progress + competition and an objectively better rideshare alternative compared to shitty yellow cabs
A story of pepole failing for 16 years to adapt to changing advances in economy.
No matter whom they blame, their are victims of their own failure.
I live in Manhattan and I use both yellow cabs and Lyft. I really sympathize with these drivers and they should get some debt relief. But they are also a part of the problem. They need to provide better service otherwise people will continue to shift to Uber/Lyft. Late last year I hailed a yellow cab, the driver didn’t stop, just slowed down and asked me where I wanted to go (they are not supposed to ask you until you are in the cab) and then sped away before I could answer. I didn’t use yellow cabs again for several months after that. Most people these days prefer Uber/Lyft because they are more reliable.
yea, i wish them the best, but in the past 2 years since moving here... I have yet to be able to get a cab to stop for me after 10pm, in the lower east... Uber/lyft is just so easy
@@cjezinne Their racist that's why they aint pick you up
@@eagleeye8916 yea, it’s a real thing.
How do you expect people to use you if you are rude and refuse to pick people up? 👀🤷🏿🤦🏿
@@eagleeye8916 Maybe CJ spoke with sub-standard grammar and the cabby didn't know what they were saying.
Ohhh yayyy! So now not only do nyc residents have to pay rip off prices for cabs, but their taxes are also paying off these drivers “investments”. Now those medallions shouldn’t be allowed to be sold for those ridiculous prices anymore
Keep on ! From Greece with love
And yet most of them are still selective on the passenger’s destinations… each and everyday I see cabbies turn passengers away…
They sure need the money… 🤫😉
So yellow cabs want me to pay them $35 for the same exact ride in a better spaces car for $22 also known as uber or lyft? Yea, the yellow cab business is over. Pack it up.
I honestly felt disgusted at those politicians going up on stage pretending they're such benevolent "men". It took nearly two months of hunger strikes and nonstop protesting to give in.
The politicians should be working for the people, not the corporations. They allowed this system to come into place and turned a blind eye at 9 suicides. They only cared when more media attention was brought to the issue.
spittin factual statements
It’s not like they didn’t know it was going on, it was right outside where they work, they probably made many racial or discriminatory remarks about them being there
Spitting facts 💯 👏 😠
The only Politician I recognized was US Senate majority leader Chuck Schumer lending moral support. Seeing as his power is only on the federal level, they're isn't much he can do to force the city hand at the local level. But, someone from the city must have championed their cause, otherwise nothing would have been done. It's not that there aren't politicians who care; it's because they need to persuade those that don't see it as a priority. That's why people protest.
What do you expect them to do without completely undermining the concept of free market that we enjoy in the US? It takes time, but also they don't care...
Government overregulation has destroyed many livelihoods. As far as the cab industry in NYC, I can't say I'm heartbroken.
The price for taxi transportation was driven up. That caused the price of the medallions to get inflated. Then, Uber and Lyft popped up and burst their monopoly bubble.
Simple economics predicted this situation.
Also, just watch, Uber and Lyft will increase their prices higher and higher and become the new taxi.
. As long as the market bears those prices, it WILL happen.
So you bought something prohibitively expensive that you hoped to sell to the next generation of drivers at a price that's even more prohibitively expensive. That's the retirement plan? Sorry, but if that system didn't crash today it would in the future. It's just cab drivers exploiting future cab drivers to fund retirement without any added value.
Sounds like the future of the housing market.
You need the medallion to be able to drive a cab. These are poor and desperate immigrants that got conned into believing in the American dream. It's not like they can just go and get a better job. Any job that is mainly done by immigrants is usually extremely exploitative. People only do these jobs out of desperation.
@@toolbaggers Yeah but it's also cab drivers selling the medallions and it's the new buyers who are buying them with the intention to pass them on to the next guy at a greater cost. It sucks to be the greater fool, but if they bought it under the idea that they could flip it for more down the road then they're complicit in that exploitation.
@@brasssnacks8413
Damn right! They want to be rewarded for their greed and stupidity.
sounds just like most of the shady NFT's today.
Interesting video, but we are omitting certain things. Many cabs are dirty, they weren't incentivized to clean them. If you are a tourist, you get taken advantage of, because you don't know the routes and you end up paying more. Racism and prejudice, many drivers for whatever reason avoid certain areas and don't pick up certain ethnicities. These are some of the reasons that led to the rise of Uber
Maybe they do not have time to clean and cannot afford maintenance. With debt there cannot be any downtime, not even for rest.
We can't just look at it without considering context, as noted above.
Those are broad strokes you’re using to describe thousands of drivers. The fact is that the city made a system selling medallions as a pay to play system and then abandoned it as soon as big tech came into the system leaving immigrants, minorities, and normal cabbies holding the bag.
@@michaelpettersson4919 if you don't take into account the overhead costs of running any business, you are already doomed for failure, it's simple economics
@@JohnSmith-og6kl I seen plenty of businesses popping up that I just know will not last long. I am usually righ and I have no degrees in economics. Too many people have more enthusiasm then business sense.
I don't understand New Yokers, they are willing to pay thousands of dollars for a small closet called "studio apartment" but also willing to pay almost a MILLION DOLLARS to drive a yellow cab like.... that city is bonkers
I’ve been treated like crap by cab drivers for years I’m so happy for Uber/Lyft they’re more reliable and less expensive. I get treated with respect! I don’t have to deal with the credit card machine not working. It’s just more ideal I don’t ever see me going going back to using cabs
Just take the train
I had no idea medallions were that expensive. Good for them for standing up against the city and getting some relief
Yet, similar to the big banks that cause the housing crisis and Great Recession, these predatory lenders are still operating with impunity. Laws are only for the little guy.
And this problem is not confined to just New York, it’s happening in other countries outside of the US
@@AlphaGeekgirl For sure, Taxi permits are crazy expensive everywhere, I live in Mexico, in a small town in the south, a taxi medallion cost around 55-60K USD, the medium salary in Mexico its around 500 USD a month.
They don't buy them from the City. They buy them from other cab drivers. The city doesn't set the prices, the drivers do. The people exploiting these cab drivers are.... drum roll.... cab drivers. They're just upset that they can't exploit younger drivers down the line as was their plan. Everyone involved in this predatory practice, buyers and sellers, are all complicit
This medallion stuff sounded shady as f.
400k+ for a license to drive a cab is absurd.
My uncle sold his medallion just right before the price crashed and opened a restaurant of his dreams.
I'm happy they didn't have to go through this kind of problem.
This is just another instance where people got greedy and technology passed them by. It happens all the time. The difference now is that people don’t take responsibility but expect the government to bail them out.
Many years ago it was yellow cabs and car services. I remember a lot of cabbies not wanting to take me to Brooklyn many times. One day I caught a fever out of no where right before work ended and tried to hail a cab for an hour with no luck in the summer. I was forced to take the subway shivering cold . Karma for there bad service , you don't get that from Uber/lyft
Paying $410,000 to be able to start working...yeah definitely not predatory
It’s an asset that they own and can sell later.
@@rventra85 apparently they fucking can't
@@RockyM5 well- a lot have bud that’s why the prices were what they were. Admittedly there was a paradigm shift and the asset price declined- but the point is there is a difference between a license and an asset. As asset can go up or down bud , unfortunately it went down for these drivers.
Anyway not trying to get personal - I was only saying you are paying for asset in addition to be able to start working. Maybe that’s not right- but you aren’t paying just to work.
Thanks Chamillionaire, for being a co founder of Lyft. They see me rollin, they hatin 😂😂
These cab drivers used to be extremely rude, demand a lot of money, refuse rides and all other ruckus. Thanks to ride uber/lyft, etc, people can now travel reliably and cheap.
Wow they themselves put themselves into debt.
... that's usually how it works, but then they blame others for themselves being in debt... and blame "capitalism"... Not blame the greedy government body that charged for a flashy sticker that gives permission to do work. The existence of the madalions was the original problem.
I refused to take taxis in NYC the drivers were always rude, some wouldn’t take credit cards, some wouldn’t drive you to the other boroughs.
They made bad investments and got burned. The city shouldn’t have bailed them out.
They don’t go to other boroughs because it’s not safe why ya all too salty when people think of thr safety.
thanks for interesting video !
Wow that’s a better ending than I hoped for this video
Congratulations
And condolences to those who suffered and lost family and friends.
I love when people act like their way of making a living is more sacred than any other way.
I sympathize with their struggles. But it's not Uber/Lyft's or the City's fault that you bought a $400,000 - $700,000 medallion from another Cabbie.
It's very similar to opening a new business - If you cant afford the upfront costs without getting into trouble financially. You shouldn't make the investment. You're going to have to make enough to pay off $700,000 PLUS enough on top of that to have some profit... According to google, Cabbies earn between 60k and 140K a year for the very top earners. Plus factor in cost of living for NYC. And the costs of your vehicle and gas/maintenance. It would take a *very* long time to come out ahead with that deal.
Paying $400,000 - $700,000 upfront to potentially earn 60k - 100k a year is not a great strategy in my opinion.
It would have been smarter for them to drive freight. Get their CDL and get hazmat certifications. Only about $4,000 - $5,000 for the licenses. And you can easily earn 100k + a year... They even could have bought their own truck for 100K and then been in an even better position to earn more. Then move you and your family out of the city, somewhere more affordable to live.
Buy a house, raise a family, get a dog. There's your "American Dream"...
thats your american dream buddo
I agree with you bad choices have consequences that remind me of everyone crying for government to forgive there student loans. It's almost the same exact story
@@bryansacco9272 - The whining about student loans is even worse. The average student loan debt is less than the cost of the average new car. People pay their cars off in 5 to 7 years. There is no reason in the world that those student loans cannot be paid off.
no the reason is they can resell it at the price they paid for it and more.. until the apps came
@@stebopign or it was stupid to begin with same goes for anyone who believes yeah this condo is a good investment even if you pay it off you have 1k in hoa every month. Everything just doesn't go up common sense
I'm from Mexico and I was on vacation in NYC last year. Wow !! I saw taxi drivers apparently living out of their cars , clothes in the back and plastic bags with garbage in the front. Never seen that in my country or anywhere else for that matter.
I’m sorry for these people. They made an investment, a large investment, in a business that was destroyed by new technologies. No one bailed out Kodak. For decades, a medallion was a very sound and a very smart investment. Thousands of cab drivers retired, sold their paid off medallions, bought a retirement home in Florida paying all cash. They lived a very happy retirement. I’m sorry a new technology screwed them. I had buddies at Kodak. New technologies screwed their careers. Screwed their retirements. Kodak employees received no bailout. Sorry dudes. Friend of mine at Frito-Lay was married to a Senior VP at Blockbuster in Dallas. New technologies screwed him bigtime. He received no bailout. The City and the banks did not screw you. New technologies screwed you. I had a Senior VP of Finance who had a very dry sense of humor. In his words, “Life’s a b*tch….and then you die.” I know, a real motivator. But God was he funny.
Again, I’m sorry for you. You made an investment that had always been very sound for decades that soured due to new technologies. Life’s a b*tch….and then you die. Sorry dudes.
As a Person of Color living in Manhattan my whole life. I gotta say as much as I hate Uber and Lyft. Before them I couldn’t get a taxi in New York to save my life. Yellow taxi’s never picked up ppl of color. Now because of crappy Uber the minute I put my hand up two yellow taxi’s stop for me. I hope they help em but yellow taxi’s in New York were racist as fuck!
Uber/Lyft are not the underlying problem are. America is. It was local government that made this regulation and then overlooked it for rideshare when politically convienant. It is the fact that as the richest country we have less social safety net than peer nations despite the fact of targeted economically discriminated policy that persisted for generations and for which their was no compensation. If you remove rideshare you just create less income options for a working/low socioeconomic class that already has too little.
@@ca8824 why is America the problem when this literally was a nyc thing?
No need to be dramatic
@@justSTUMBLEDupon because racism is a problem in America, this is a specific problem within racist America, but racism as a whole in any part of America is an American problem.
Or it's you the racist? Don't let your resentment envy hypocrisy or hate run your life.
@@justSTUMBLEDupon
NYC is not the only place with widespread economic distress in America. The issues cited here a symptom, not the underlying cause.
No need to be willfully blind.
Insane, they pay more than a what it costs to become a doctor just to drive a taxi.
Australia here - we have a similar situation here, where taxi licenses cost hundreds-of thousands of dollars. Then ride-share companies popped up - and the government actively supported them! License prices crashed and taxis started leaving the road because the revenue dried up.
Same thing happened here where. I feel the taxi drivers got greedy and because it was a virtual monopoly they could be rude since you had no other option. Now Uber is here.
These medallions were sold on a secondary market.. Is anyone going after those taxi medallion owners that benefited when they purchased their medallion for $100,000 and sold it to the next sucker that paid $400,000?
These drivers were engaged in speculation on the increasing price of the medallions. Does ANYONE believe that spending (and/or borrowing) $700,000 on a medallion to operate a cab was with the intent operating it as a profitable business?????
These guys gambled and lost.... just like buying any other investment.
Yea, they said it was an "investment". Investments can go to zero. It just really sucks that it is mostly immigrants who got sold this get rich scheme.
I don’t know about you guys but I LOVE the fixed rates of rideshare (Uber/Lyft) plus the safety and flexibility to debate anything. Cars smell great as well. Taxi drivers who sleep/eat in their cars are immune to those nasty smells yet demand you pay an arm and a leg to go from point A to B. If they’re mad at you they’ll kick you out or not come at all, also intentionally taking a longer route if you don’t know the area. That was before Uber. Moral of the story; Do not put all your eggs in one basket.
A taxi medallion is just like any other business and you’ve got to have a back up plan if it fails or beware of that possibility otherwise you’re just naive.
Yeah those filthy cabs can make one think about just walk in the rain instead.
Wait till ride share has put the regulated taxi's out of business, then tell me how much you love the "fixed" rates.
@@billwhitis9997 I’m so ready for that day! Regulated taxis cost owners too much money to start like painting the vehicles specific colors, equipment etc making them very few thus naturally more expensive as the drivers can’t use them for other business and to recoup their investment, charge an arm and a leg.
Ride share is compromised of many drivers who haven’t financially invested too much into the company so can optionally work part time with the option of taking breaks and not relying on human dispatch to assign them rides/stand in a queue waiting. The app does everything making the process to request a ride smooth and guaranteed. The biggest grind people have with tradition taxis is not knowing the full fare in advance and often getting hit with a ridiculous charge at the end due to the running meter with the exception of direct rides like the airport. Taxis have had a monopoly for decades and totally abused that privilege.
So far we have Uber and Lyft as the major ride share companies but in time, there will be more and competition is always better for the customers getting the best possible rates. I’ve NEVER heard anybody fighting for the taxis unless you’re a driver losing money to the new guys. lol
If a guy got $700K-$1M in cash, and credit, and he buys into a cab business; that's just a bad financial move. Are we supposed to feel sorry for these guys?
This is just untrue. Uber was founded in 2010 and went live in 2011. 3 years later in 2014 the tin plates were worth over a million dollars. Bagholders gonna be bagholders
Classic tale when government is handling market. If there never been any cap on taxi license the value of license would have never risen to those ridiculous amounts.
That'll just shift the problem to too much competition for the driver, from my point of view it's just a case of old technology being outcompeted by new technology, they take a bet that everything will be the same in the future but the reality is the world will keep moving forward.
I'm sorry this is happening but let's really look at taxis as a whole. Uber/Lyft has a fixed rate plus it's safer. I can share the details of my driver to loved ones in case I don't feel safe plus if the car has stopped for a while/ is away from the route Lyft will be automatically alerted I know this because it helped me when my driver got into a car crash. As for the taxi drivers I'm sorry to say but alot of them are ass hats. I used to work at a hotel near the airport and we would use a taxi voucher to bring guests to us. I have seen alot of taxi drivers out right refuse to take guests to the hotel. For those that did they would try to pressure them into giving them a large tip even though our voucher covered everything. Is it any wonder why my hotel switched to a business account with Uber? In conclusion taxis are going to become extinct and drivers need to stop fighting progress and learn to adapt to a new world
I agree with you. The cab licensing system is a complete joke which promotes gatekeeping which in result provides customer with higher rates and no ability to combat disrespectful behavior from the driver. A lot of drivers invested heavily into current cab system which is becoming obsolete and they will have to cut significant losses and accept worse work conditions due to the market competition. It is better for the customer but as you see a lot of drivers are left with horrible debt and no ability to repay it under current market. For example nobody would be happy going from 60$/hr to 25$/hr while still having enormous college debt to repay. Greater good has it's casualties.
Uber/Lyft has a fixed rate?? The prices for those services literally changes based on an algorithm, there is nothing fixed about that. Have you never heard of "surge pricing"? The only fixed rate transportation in NYC is the MTA and NYC taxi, the prices are literally written on the side of the car, not controlled by some AI that can assess demand and figure out how to squeeze the most money out of you.
@@jquiizondeck first of all when they give me the price before I even request a ride I know that's how much I'm paying nothing more nothing less and even if there is surge pricing with Lyft I can just switch to Uber. What I don't have to deal with is thieving taxi drivers like u taking the long way to get to places just so u can run up the fair btw ur one of the lying thieving taxi drivers that will only hasten the fall of ur entire industry so I would stop replying from here on out unless u want to embarrass ur self further because ur not fooling anyone with this weak attempt at undermining ride sharing
@@jquiizondeck it’s fixed rate as in the price of the trip is known before you request a ride, versus metered rate where taxis can intentionally drive longer ways to reach your destination in order to steal your money.
@@xYasago Ride sharing apps are metered too, if you check the summary of your trip you'll see the calculation (often times a combo of mileage + time). The rate given before you request a ride is an estimate. Neither system is perfect unfortunately.
Rideshare apps were a godsend. Many cabs wouldn't go to the outer boroughs. They weren't allowed to do that, but they did it anyway.
This started by the Govt. creating a limited asset in the first place. They regulated the cabs to extremes (typical govt control) and for that level of regulation - the cabbies had some assurance of lack of competition. Then Uber and lyft came in with really no regulations (due to the company being able to pay off politicians with campaign funds). The central aspect of the cabbies not knowing what they were signing was an insult to these men and women. They fully understood the system and took full advantage of the system. Yes the ones that bought at the end for cycle ( buying medallions for over 750k) got really hurt. There were far more that bought them when they were low and would refi the medallion every three years to take out equity along the way. That money bought houses, started other businesses, put their kids through college. The GOvt created the mess and they should be held accountable.
Thank you Uber and Lyft for forcing these cabbies back into reality.
I agree some of them are rude and act like you need them. 👀🤷🏿🤦🏿
The thing is, the cab industry didnt adapt to the times, they should have immediately built an infrastructure similar to Uber to keep up competition, they were stuck to the old system and it collapsed, like many other industries out there that are now obsolete or replaced completely, Soon there wont be any jobs for drivers, car automation is reaching to a point where it will be the new reality, and you notice or be warned, testing and research and development are happening right now, conducting tests and it will suddenly happen, dont expect a progress report card on it.
I worked at a PR event for a very high profile celebrity at the Waldorf Astoria New York in 2012.
In their PR bags, there were $100 off Uber discount cards in the rich people's free PR bags.
These rich people KNEW companies like Uber would take over the market once it was allowed in NYC. Then the badge PEAKED to over 1 million in 2014. Coincidence? I think not.
Thank you large investment speculators who pumped medallion prices, do the same with Uber losing 10s of BILLIONS of dollars for nearly a decade . . . the same companies who then turned around and raised rates while , you guessed it screwing over the drivers. The status quota is the same now, except instead of the subsidized rides from when all the investor money was flowing in during IPO it will be coming out of your wallet. The only thing uber and lyft did was force the hand of taxi and the shuttle service industry to adapt into the modern era. This modern era, aka web3.0 is intentionally designed to extract every last possible cent from your wallet with far fewer regulations.
The crux of this point is that while it is generally good that taxi's are modernized. The great union jobs went away, taxi drivers were professionals. Now it is nickle and dime Tricklescam economics, where the losers are everyone at the bottom.
@@Tux0xFF hahaha, ever been in a car with autopilot? Ya, no thanks
The medallion holders took a huge risk on investing in a legal protection racket. Systems like that should not be allowed. The medallion permits should have been annually renewed, not “private property.” Corrupt.
Many of the yellow cabs were dirty, drivers wouldn’t take you to the outer boroughs, they spoke incessantly on their phones and made the ride generally unpleasant They thought they would be the only game in town forever
I lived in nyc my entire life, you will never ever see a yellow cab outside lower Manhattan. This video doesn’t how how drivers act and behave. Sure there is a lot of tourism down there among other things down there. NYC is more than just Manhattan. Now that I drive Uber full time you don’t really need those cabs especially as a passenger. They failed to adjust to the times as a business.
The yellow cab service never changed with the times
i symphatize with the drivers, no way on earth i'm going back to pre uber/lyft era. They used to be so rude, late, racist, refusing to pickup people on the street. that predatory business does not deserve to be saved.
That feeling of being a black or brown person and what it felt like to stick your hand out to hail a cab not knowing if they would stop for you. And if a caucasian person was behind you also waiting for a cab they would go right past you and claim they didn't see you.
@@KNByam That’s because of not getting tipped, not paying cab fare and getting robbed.
This story should show that government intervention has vast unintended consquences.
9:40 "You cannot change anything..."
--> Yes you can, and you should.
Cheddar, this video was SO well made. 💖💖💖
This is what happens when you fight against innovation for a little too long. Clinging to what was is not gonna get you new customers. If you want Uber out then you need an actual competitor app that has an easy UI. Cabbies are more independent and aren’t willing to share revenue with an app so this isn’t gonna happen. GG
My memory of a NY cab driver in 1979 when I was five years old with my dad was a foreigner, probably an Iranian screaming you pay double.
Hold on a second. These guys invested in a business and lost out to the competition. So what? This happens every day and we don’t cry ourselves to sleep over it. Their poor service (taking longer routes, surly attitude, turning down business, ignoring hails, high rates, dirty and cramped passenger areas, etc.) was only sustainable because of the effective monopoly they enjoyed for years, now mercifully broken. No loss to me
"I put all my money in a stock, it crashed and now I want to be bailed out"
How is this different from the bank owners getting bailed by big state screwing the people?
Yeah, bad for him, but he made his money on a monopoly, and it crashed, he shouldn't be bailed.
Exactly, feels bad for these taxi drivers, but their way of transportation is being obsolete and ride share is just more convenient. Science and Technology keeps the world moving.
Because the crappy tin plates were only that expensive because of artificial scarcity from city parasites who profited off the system. If the SEC says "a company can only issue 100 shares of stock" and you pay a million dollars for one share, and then the SEC says "just kidding, they can issue as many as they want" and now your share is worth $67.50, that is not your fault or the company's fault, that was the SEC.
@@dansands8140 A more apt comparison would be the SEC not intervening when a second company appeared on scene and started issuing stock. The City wasn't get rich off this. Scarcity means nothing to them since they don't own the stock. They weren't selling new medallions after the initial ones went out. It was the cab drivers selling them and pressuring the City not to print more since they would devalue their "investments." The cab drivers aren't simply the victims here. They both victims and perpetrators.
I see that you are confused.
Medallion is a license created by NYC (HASS ACT 1937) you pay for the right stipulated in NY NYC and Taxi Commission laws rules and regulations. Apps got in the business by corrupting and coercion (politicians).
Do you want real competition? Change the laws, compensate medallion owners and create one set of rules for everyone to follow and let's compete.
The value of my NYC home went down, why doesn’t City Hall bail me out?
I was just in NYC but there was one part where we were trying to get a cab instead of an uber/lyft and at least 4 turned us down and couldnt take us for no logical reason so I highly doubt their struggling to make ends meet if their pulling that bull***t. So unfortunately in the end we eventually just called a lyft. So I ask you, are they really struggling?! I highly doubt it.
What time was that? It might have been shift change and they had to get their taxi back to their garages, they probabaly lease it on a daily basis. Not everyone owns the madallion.
So if they got you at a time where it was about to be shift change and you were gonna take them far off into a different route, it would have cost them out of their pocket because the garage would have charged them.
@@Hassan38484 If it's a shift change then why even stop? Just keep driving. If they stopped and denied people it's because they consciously chose to do so.
@@jitmut if the stop is on the way to the garage then it makes sense to ask
I remember these taxis wouldn’t pick me and my mom up when at night for the typical reasons. They would pass us by and pick up people who didn’t look like us. I remember being young and not understanding why we weren’t being picked up. I still feel bad for the cabbies.
Don't karma is collecting