New York City, USA — Daily News Wednesday recently revealed that earnings of NYC cabbies have fallen by 36% since 2013.
This information proves that the taxi industry is definitely suffering from major damages. With overpriced medallions and reckless loans by industry leaders, there’s no wonder why thousands of drivers are falling deeper into debt every year.
Last March 2013, yellow cab companies saw at least half a million rides per day and taxi medallions cost $14,400 a month. This was pre-ride-hailing apps.
Fast forward 6 years later, each yellow cab earned approximately $9,100 ― an income drop of 36%.
On the other hand, ridesharing apps such as Uber, Lyft, Juno, and Via garnered 770,000 daily trips just this March. While yellow cabs only had over 252,000 rides per day. As these apps are enjoying record-breaking ridership levels, cabbies are accepting the industry’s lowest record since 2011.
Many factors contributed to the industry’s downfall. But the primary ones that leave many drivers concerned are the unfair competition with ridesharing apps and the predatory lending practices within the medallion industry.
A yellow cab advocate, Nicolae Hent, says yellow cab drivers are earning one-half less than they were six years ago.
Furthermore, Mr. Hent claims that Uber and Lyft – which aren’t required to buy expensive medallions – have better advantages on the market.
“Competition is good for customers, but you cannot let someone come into business with free licences,” said Hent. “If they have a free license, I should have a free license.”