How New York City Created the Medallion Crisis

Cornell University postdoctoral associate and former yellow cab driver Nicholas Occhiuto writes about the origins of the NYC taxi medallion crisis

Photo Credit MORAN

By Nicholas Occhiuto, published in the New York Daily News on November 22, 2020

Last Thursday, New York City Comptroller Scott Stringer stood shoulder-to-shoulder with members of the New York Taxi Workers Alliance to offer his support of their proposal for taxi medallion relief. The breakthrough plan that he supports would give medallion owners the option of refinancing at $125,000 with restructured financing over 20 years and 4% interest, meaning a monthly mortgage of about $157.

The city-vetted deal is financially sound for both drivers and taxpayers. But, just as critically, it finally acknowledges the city’s role in creating a speculative bubble, and honors long-unkept promises it made to its drivers.

Once considered to be one of the best investments in America, the medallion industry in New York City has collapsed over the last five years. After having bought the assets for as much as $1,050,000 in March 2014, many owners now find themselves under-water — leading many to lose in their homes, foreclose on their medallions, and in the most extreme cases, commit suicide.

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The TLCMKT Newsletter is written by Dawood Mian, Founder & CEO of TLCMKT. I cover the NYC ridehailing industry and related news. Search TLCMKT for TLC cars, parts, service, accessories, professional services, reviews & more. Find great deals at TLCMKT.COM.