(ht Mark Perry)
Sunday, April 6, 2014
Why Taxi Cartels Hate Uber
Over the last 10-years, the "right" to own a taxi in NYC (via ownership of a taxi medallion) has climbed by +336% versus a climb in the S&P500 Index of +60%. The current price of an NYC medallion is around a million dollars. The entire value of a medallion is the result of the government restrictions put on the number of taxis that can operate in the city. Uber disrupts this cozy cartel and provides an alternative to those looking for taxi-type service.
(ht Mark Perry)
(ht Mark Perry)
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I've always viewed taxi medallion and other related systems as nothing but crony schemes. They serve no purpose than to limit competition.
ReplyDeleteRelated systems such as IP?
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