Tuesday, December 2, 2014

Under Pressure From Uber, Taxi Medallion Prices Are Plummeting

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, reports NYT.

In other big cities, medallion prices are also falling. In Chicago, prices are down 17 percent. In Boston, they’re down at least 20 percent. In Philadelphia, the taxi authority recently failed to sell any medallions at its asking price of $475,000; it will try again, at $350,000.

The cause of the price decline?

Uber circumventing the taxi cartels that exist in most major cities, which is resulting in more competitive rates.

 In Chicago, notes NYT, for example, 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.


  1. Taxi medallions are nothing but crony capitalist scams

  2. I used Uber two weeks ago for the first time. The fare was at least half of what a Taxi would charge. The car was a Nissan Ultima. Let's keep our fingers crossed that the politicians don't muck it up.