Friday, November 28, 2014

Government Created Taxi Monopoly And Mandated Inflated Prices Broken By Free Market Competitors Like Uber And Lyft: Declines In Fares And Value Of Taxi Medallions

From The New York Times, Upshot, "Taxi Medallions Fall in Value, a Gauge of the Uber Revolution" by Josh Barro:
In major cities throughout the United States, taxi medallion prices are tumbling as taxis face competition from car-service apps like Uber and Lyft.

The average price of an individual New York City taxi medallion fell to $872,000 in October, down 17 percent from a peak reached in the spring of 2013, according to an analysis of sales data.
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In Chicago, prices are down 17 percent. In Boston, they’re down at least 20 percent, though it’s hard to establish an exact market price because there have been only five trades since July. In Philadelphia, the taxi authority recently scrapped a planned medallion auction.
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A seven mile ride from the Loop to the University of Chicago in a medallion taxi costs about $26, including tip. The same trip cost $12.29 this April with UberX, the lowest-cost service option from Uber.