Owners of New York City's taxi "medallions" filed a lawsuit (PDF) against city regulators today, saying their business has been devastated by the decision to allow companies like Uber to compete using "E-hail" services.
A medallion is required to operate a New York City yellow taxicab, the only type of vehicle allowed to accept passengers who hail cabs on the street. Until recently, those medallions could sell for over $1 million. Companies like White & Blue Group, one of the plaintiffs in the case, managed fleets of licensed taxicabs by leasing out the medallions.
According to the suit, White & Blue Group, which manages the largest fleet of leased taxicabs in New York, "has seen its monthly leasing income drop as much as 50% in the past year," and has been forced to idle as much as 20 percent of its fleet each day. The complaint was filed today and reported earlier by Reuters.
Extortionists crying about losing money is about the saddest sight in the world.
Related Stories
Uber is settling class action lawsuits with drivers in two states, who will remain as independent contractors rather than employees:
Uber drivers will stay independent contractors, not employees, in California and Massachusetts, just as the ride-booking company had maintained they were. Uber is settling class action lawsuits by drivers in the two states for a maximum of $100 million.
In a statement, the company says it will pay the plaintiffs $84 million, plus another $16 million if Uber goes public and within a year increases in value by one and a half times over its worth in December. The deal allows Uber to keep labor costs low because it doesn't have to pay independent workers the same kind of wages, expenses and benefits as employees.
In a claim last year brought by an Uber driver, the California Labor Commissioner ruled the driver was an employee. Although the commissioner's ruling was specific to the claim and not precedent-setting, it gave plaintiffs some ammunition and Uber more incentive to negotiate. Still, Uber has been able to keep this aspect of its business model in place.
Related:
California: Uber Driver is an Employee
Uber Drivers Granted Class-Action Status in California
Cab Medallion Owners Sue NYC, Blame Uber for Ruining Business
Uber: Cartel or Company? Court Rulings Diverge
Uber to Pay $10 Million to Settle California Lawsuit Over Safety Claims and Airport Surcharges
(Score: -1, Offtopic) by Anonymous Coward on Thursday November 19 2015, @11:44PM
will use java multicore intelligence . java works fine, ppl.
(Score: 3, Insightful) by jdavidb on Friday November 20 2015, @12:04AM
ⓋⒶ☮✝🕊 Secession is the right of all sentient beings
(Score: 5, Insightful) by bob_super on Friday November 20 2015, @12:10AM
The monopoly comes with regulations for all parties' safety. Uber &co have not been willing to enforce all regulations, because they happen to cost money.
In the end, the people on the ground (drivers, passengers and people living in the area) stand to lose when the events which triggered each regulation start happening again.
(Score: 3, Interesting) by takyon on Friday November 20 2015, @12:30AM
Are Uber drivers with app-using customers and customer ratings more or less likely to be killed than cabbies?
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 3, Interesting) by JoeMerchant on Friday November 20 2015, @12:41AM
>Are Uber drivers with app-using customers and customer ratings more or less likely to be killed than cabbies?
Unknown, and that's what bothers people. Personally, I'd feel almost as safe stepping into an Uber or Lyft car today (with my cellphone) as I used to feel getting into licensed cabs back in the day before cellphones. Cabs haven't really improved since then, but overall - you're a hell of a lot safer with people who know you can phone for help, leave service ratings that matter (ever try to complain about a cab driver via those "Am I an asshole? call this number:" numbers?), etc.
🌻🌻 [google.com]
(Score: 5, Insightful) by frojack on Friday November 20 2015, @02:16AM
So all the city need do is tell the cab companies to go ahead and use an app for dispatching. Problem solved?
The Technology of medallions was set up to build trust in the taxi system, which NYC desperately needs.
The new technology puts more control in the hands of the customer.
The new technology isn't fully proven yet.
So let the cab companies use BOTH technologies for a while.
Their complaint is valid because NYC sold them a limited license, took the money, then allows others to do the same job
without restrictions and without licenses.
Yes, they had a monopoly (and still do to some extent). and Yes the promises made by the City are not being met.
You can argue that those promises, and those medallions should have never been issued.
And you can argue that the taxi industry was a willing participant in this monopoly scheme.
You can berate them for their insistence on antiquated dispatching methods, their regulated rates, and all the other things they do to prevent actual competition from taking place.
They had a good run. But its all crashing down. And its hard to blame ONLY the City or ONLY the medallion holders.
No, you are mistaken. I've always had this sig.
(Score: 2) by captain normal on Friday November 20 2015, @02:47AM
Not quite the same. The "medallions" allowed the taxi fleets to cruise the streets and pick up people hailing a cab. All fine if you were in an area where a taxi could be found. If you called for a cab you could wait up to an hour before one showed.
Uber can't pick up random people off the streets. But if you use the app, you should have a ride within 15 min.
So not quite the same job. Still I would think big city cab companies likely rank only slightly behind the cable companies in customer dissatisfaction.
Everyone is entitled to his own opinion, but not to his own facts"- --Daniel Patrick Moynihan--
(Score: 4, Informative) by frojack on Friday November 20 2015, @03:28AM
So not quite the same job.
Well, what I meant was..
Originally the medallions were to protect the public from robbers posing as taxi drivrs.
Secondary feature was to limit competition, but that came later once the cabbies captured the regulators.
Uber apps with driver ratings have the same purpose, to give some level of knowledge to the customer so they could avoid assholes.
Lately, the protection function of the medallion has become secondary to the competition limiting function.
No, you are mistaken. I've always had this sig.
(Score: 2) by JoeMerchant on Friday November 20 2015, @04:49AM
I don't think the "protection from robbers" ever was much of a factor, if you can procure a big yellow car - how hard would it be to forge a medallion? And, robbers in NYC have many many other ways to get at people besides tricking them into a cab.
🌻🌻 [google.com]
(Score: 4, Interesting) by NCommander on Friday November 20 2015, @05:15AM
To be fair: Taxis have to have the medallion physically present on the hood, have their cab numbers visibly mounted on the roof and doors, *and* require special Taxi license plates. You might be able to forge all of the above, but all it takes is one NYPD officer checking the plate to get busted. Airports also log in cab drivers and out to prevent fakes from getting in queue.
While I think the medallion system is rigged by preventing competition, it does prevent you from getting hijacked by fake cabs or those who would abuse the meter and such (a common practice I've seen and/or experienced in other cities and countries).
Still always moving
(Score: 0) by Anonymous Coward on Friday November 20 2015, @01:20PM
Throughout a trip in India, I just tracked the route with GPS and maps before and as we were driving (none of the meters were off). I'm not sure how much people have to worry about meter abuse these days, especially in the US.
(Score: 4, Insightful) by JoeMerchant on Friday November 20 2015, @04:47AM
Medallions were set up to prevent overcrowding of the roads - and in the process they created a market of scarcity, which is what drove the value so high.
🌻🌻 [google.com]
(Score: 0) by Anonymous Coward on Friday November 20 2015, @01:02AM
It's the public's safety from the drivers, not the drivers' safety.
And the fact that there are star-ratings doesn't impact that at all. Because those are always reactionary. It's similar to why we require auto insurance.
(Score: 2, Disagree) by jasassin on Friday November 20 2015, @02:08AM
Takyon asks a question and gets modded disagree. How in the fuck can you disagree with a question? Some dumbfuck taxi driver mod this shit or what?
Sorry, dumbest mod I've seen in a long time. Modding up just because this is fucked.
jasassin@gmail.com GPG Key ID: 0xE6462C68A9A3DB5A
(Score: 3, Disagree) by frojack on Friday November 20 2015, @02:19AM
There are a LOT of modding violations happening lately.
Disagree is the least of them.
No, you are mistaken. I've always had this sig.
(Score: 3, Informative) by The Mighty Buzzard on Friday November 20 2015, @11:21AM
Yeah, I noticed a few of them. Aside from Spam abuse and mod-bombs though, that's up to the people who have integrity to correct with their own mod points. That's why so many of them get given out every day. Beats the hell out of us staff types deciding whose opinions carry more weight.
My rights don't end where your fear begins.
(Score: 3, Informative) by The Mighty Buzzard on Friday November 20 2015, @11:23AM
Oh and Disagree doesn't adjust the score. It's a +0 mod. Just makes it more likely that Disagree will show up as the reason for the score.
My rights don't end where your fear begins.
(Score: 0) by Anonymous Coward on Friday November 20 2015, @06:44AM
Dead men write no bad reviews.
(Score: 5, Insightful) by deimtee on Friday November 20 2015, @12:36AM
If you read the article and the comments, one of the medallion companies main complaints is that their drivers are leaving to drive for Uber.
The people mainly being hurt are the rent-seeking medallion owners. There are having to pay their drivers decent wages and give them reasonable working conditions. How sad.
If you cough while drinking cheap red wine it really cleans out your sinuses.
(Score: 2) by hemocyanin on Friday November 20 2015, @03:15AM
Welcome to the new boss, same as the old boss. 10 years from now: "the people mainly being hurt are the rent-seeking Uber owners."
(Score: 2, Disagree) by jdavidb on Friday November 20 2015, @01:47AM
The monopoly comes with regulations for all parties' safety.
Freedom does that, too.
ⓋⒶ☮✝🕊 Secession is the right of all sentient beings
(Score: 4, Informative) by NCommander on Friday November 20 2015, @05:10AM
Let's at least point the finger at the right place: the city created the monopoly in the first place by making medallions a very scare resource.
Furthermore, you don't need a medallion if you're a "hire" service. Its only required in Manhattan to hail on the street for one, and livery/car hire just have to be licensed. Green cabs which pick up outside the island* don't have medallions for instance.
(for those who don't know, the vehicle itself has the medallion physically mounted to the hood).
* - nitpickers: yes, there is a small section of upper Manhattan (above 180 St I believe, that the green cabs can pickup in).
Still always moving
(Score: 2) by jdavidb on Saturday November 21 2015, @01:01AM
Let's at least point the finger at the right place: the city created the monopoly in the first place by making medallions a very scare resource.
I think we're agreed on that. I start with the city as the monopoly of force in the region.
ⓋⒶ☮✝🕊 Secession is the right of all sentient beings
(Score: 4, Touché) by caffeine on Friday November 20 2015, @09:00AM
I can't wait for the free market to route around the monopoly of doctors. How about we write an app call Stonr where anyone can be a doctor and write prescriptions.
I'd like to have a go at orthopedic surgery, how hard can it be, it's just carpentry with bone after all. And I'd be happy to just be paid 20% of what surgeons charges.
We can also route around the monopoly of lawyers. I've seen plenty of court room dramas, I'd have a go at that. And, we could all make much more at patent lawyers, just read a thread we soylenters know everything about that.
(Score: 0) by Anonymous Coward on Friday November 20 2015, @01:28PM
Those aren't really a fair comparison. The Uber drivers are already licenced to drive with passengers.
Maybe something closer to a cancer specialist prescribing drugs for an infection, instead of an ID specialist, or a divorce lawyer working a shoplifting case.
(Score: 3, Interesting) by jdavidb on Friday November 20 2015, @02:49PM
My great grandfather apprenticed to be a doctor. Unfortunately Texas law changed just before he could have become a doctor using that system. After the law change, he couldn't become a doctor without an expensive education he couldn't afford, even though he was just as qualified as all the guys running the system, who had all learned the way he did.
Lots of groups have struggled against the monopoly of doctors. At one time orthopedics had a lot of trouble from it. Chiropractors and midwives have also run into great difficulty in some areas. I'm a little bit familiar with the midwife situation as six of my seven children were born at home delivered by a midwife. Shortly after one of those deliveries the midwife went back to her home state to practice underground midwifery illegally.
ⓋⒶ☮✝🕊 Secession is the right of all sentient beings
(Score: 2) by jdavidb on Friday November 20 2015, @02:50PM
ⓋⒶ☮✝🕊 Secession is the right of all sentient beings
(Score: -1, Spam) by Anonymous Coward on Friday November 20 2015, @12:31AM
Java multicore . I'm going to subscribe if I stop getting downcoted
(Score: 1, Offtopic) by captain normal on Friday November 20 2015, @02:55AM
Too bad you can't be modded into oblivion. We don't need Oracle shills in here.
Everyone is entitled to his own opinion, but not to his own facts"- --Daniel Patrick Moynihan--
(Score: 0) by Anonymous Coward on Friday November 20 2015, @08:36AM
No, but he can be modded down to -1 so fewer people see it. But then someone like you comes along, with your +1 karma, and sends more attention his way...
Think, McFly, think!
Posting anonymously for what I hope is now an obvious reason.
(Score: 0) by Anonymous Coward on Friday November 20 2015, @12:52AM
(Score: 3, Insightful) by JoeMerchant on Friday November 20 2015, @01:03AM
They've invested 10s of millions of dollars in this particular ponzi scheme - of course they're going to whip out the lawyers when it all goes south, their investors expect nothing less.
🌻🌻 [google.com]
(Score: 2, Interesting) by Anonymous Coward on Friday November 20 2015, @02:49AM
It's funny that when the story is about TPP or H1-B, then it seems that the government should recognize that people have invested hundreds of thousands of dollars and many years to get where they are, only to be threatened by newcomers who don't play by the rules.
(Score: 1) by khallow on Friday November 20 2015, @04:47AM
It's funny that when the story is about TPP or H1-B, then it seems that the government should recognize that people have invested hundreds of thousands of dollars and many years to get where they are, only to be threatened by newcomers who don't play by the rules.
No. TPP and H1-B are about "newcomers" using the power to set the rules in their favor - like medallion owners did here. Uber is helping to undo a past injustice.
(Score: -1, Offtopic) by Anonymous Coward on Friday November 20 2015, @01:01AM
Uber run Java?
(Score: 4, Insightful) by FatPhil on Friday November 20 2015, @08:55AM
Therefore NYC is the extortionist. Why are those who've had to pay huge amounts of money for the medallions not the victims of the NYC's extortion scheme?
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 0) by Anonymous Coward on Friday November 20 2015, @08:57AM
🎻
(Score: 4, Interesting) by Daiv on Friday November 20 2015, @01:12PM
Planet Money did a really good story on NY cab medallions a while ago: http://www.npr.org/sections/money/2015/07/31/428157211/episode-643-the-taxi-king [npr.org]
Here's what NY should do to keep the value of medallions artificially inflated, which is what these medallion owners seem to want. Revoke 30% of the medallions out there. Then, the resource will be more scarce, thus inflating it's value while reducing traffic!! Win-win-win. No downsides!!
NO DOWNSIDES!!!
(Score: 2) by archfeld on Friday November 20 2015, @09:41PM
I want to be sure that the car I'm getting into is safe, and has the proper insurance so if/when we are T-boned I won't be laying in traction wondering if my cheap a$$ Obamacare healthcare is going to cover my injuries. The method of hailing or the source of the vehicle is otherwise irrelevant to me.
What is preventing the taxi company from using both methods ?
For the NSA : Explosives, guns, assassination, conspiracy, primers, detonators, initiators, main charge, nuclear charge