⌛ 87 Days Left To Remove Stored TLC Plates

Pandemic era FHV License (a/k/a TLC Plate) Storage program ends on August 31st. As of July 2022, TLC revealed 4,724 TLC Plates were in storage

Jun 05, 2023

NYC Taxi & Limousine Commission is winding down FHV License (a/k/a TLC Plate) storage program
Pandemic era program created to help drivers and fleets avoid permanently losing their TLC Plates during unprecedented pandemic period
As of July 2022, TLC reported 4,724 FHV Licenses were in storage. Many likely removed over last several months
New storage program will be announced soon

The NYC Taxi & Limousine Commission (TLC) sent out an industrywide email recently, reminding drivers and fleets that the pandemic era FHV license (a/k/a TLC plate) storage program is coming to an end on August 31st. The TLC announced the plate storage program on March 19th, 2020, in response to the pandemic.

The program created a mechanism where TLC drivers and fleets could keep their TLC Plates active without having to pay expensive commercial insurance premiums. Since the FHV License Pause (a/k/a TLC Plate Cap) passed in August 2018, if a driver or fleet lost their TLC Plate due to an insurance lapse, there would be no easy way for them to recover an expired for-hire vehicle license.

Easy to Forget

Our team at AutoMarketplace was running a luxury TLC fleet and actively involved in the industry during the pandemic. Industry dynamics were chaotic, many drivers left NYC, some fleets went of business, many were giving up on the industry.

Fleets that stayed in the industry had to cut leasing rates 50%+, running huge losses while major expenses, including insurance, stayed flat. In order to survive, many TLC drivers and fleets had to come out of pocket and bet on an eventual industry recovery. The yellow cab medallion industry, reliant on Manhattan street hails, was decimated.

Many drivers and fleets, even Lyft-backed Flexdrive (see below), completely gave up on the industry and permanently retired their TLC Plates, not utilizing the storage program although it was open to them. Others, willing to take a longer term view, utilized the storage program.

Second Largest NYC TLC Rental Fleet Company May Have Exited Business?

AutoMarketplace NYC

September 12, 2020

Let me first start off by saying assessing how many vehicles the largest NYC for-hire (“TLC”) fleets own is part science and part art, as vehicles can be registered under multiple LLCs or companies. That being said, there are a few large single entities that own many cars and which you can associate with an ultimate parent company. It may come as no sur…

Read full story

NYC and its for-hire transportation industry is in a much better place now and the TLC is making the right decision to end the storage program. The regulator has also given sufficient warning to drivers and fleets to remove their stored plates by August 31st.

Equilibrium

In January 2022, we wrote the following:

We also believe the FHV License (aka TLC Plate) storage option will be removed soon. The TLC Plate storage option allowed drivers and fleets to temporarily “store” their FHV Licenses during the pandemic as a way to keep their FHV License active, while saving money on expensive commercial vehicle insurance, if they weren’t using their cars actively. Given the recent financial support provided to the NYC yellow cab medallion industry and a renewed focus on reducing car congestion in the City, we predict the TLC will remove the ability to store plates as the pandemic (hopefully) comes to an end. Basically, limiting the amount of for-hire cars (and cars generally) driving in the City is going to be a political /environmental priority from now until the foreseeable future.
- AutoMarketplace NYC (January 13, 2022)

With the recent decision to issue 1,000 *new* EV-only TLC Plates AND the controversial decision to “re-issue” 2,500 *restricted* TLC Plates via an “SHL” Pilot, having thousands (even hundreds) of stored TLC Plates can confuse policymakers.

For example, every February (now once per year vs twice per year) the TLC assesses whether to issue new FHV Licenses, taking into consideration a range of factors from electric vehicle adoption goals to congestion to driver earnings. However, for-hire vehicle supply vs. underlying trip demand is undoubtedly one of the core drivers of “TLC Plate politics”. NYC driver earnings can be diluted if there are too many vehicles, chasing too few trips.

Having thousands (or hundreds) of TLC Plates that can be reactivated at any time, could easily throw for-hire vehicle supply out of trip demand “equilibrium” (e.g., TLC decides to issue 500 *new* TLC Plates because trip demand suggests more for-hire vehicles are needed, only to find out 500 TLC Plates came out of storage after they made their decision).

We continue to urge the TLC to create a policy of restricting any and all *new* TLC Plate issuances UNTIL all yellow taxi medallion vehicles can generate sustainable income for two drivers working a double 🚕🚕 shift. Until then, 🛑 NO NEW TLC PLATES 🛑.

We understand the ~30% of NYC Uber/Lyft drivers who lease vehicles may be upset about this statement. However, in order to protect TLC driver earnings and City-guaranteed taxi medallion loan values, a STRICT *new* TLC Plate regime is clearly required. There are also other ways, including lease caps, that can protect drivers against predatory leasing practices (e.g., taxi medallion industry already has lease cap protections in place).

How To Remove Your TLC Plates From Storage?

If you currently have an FHV License (TLC Plate) in storage, we’ve made a short video on how to remove it from storage. REMEMBER, the deadline to remove your TLC Plates from storage is AUGUST 31ST.

Link to NYC FHV License (TLC Plate) Storage Webpage

As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.

AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️