No fare! NYC cabbies face uncertain future
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- Опубликовано: 9 сен 2024
- For many yellow cab drivers, owning a New York City taxi medallion was seen as a road to success, as the value of the special license rose dramatically. But since the taxi medallion bubble burst in 2015, drivers have been drowning in financial debt. Special contributor Ted Koppel reports on how the pandemic could mark the end of an industry, and an urban icon.
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From my personal experiences with cabs in NYC, many of the drivers were jerks up until Uber and Lyft started getting traction. They knew the medallion was a key to a comfy lifestyle and they were the only game in town, so many of cab rides were from rude cabbies because they could get away with their monopoly. Started using Uber and Lyft like a lot of people and found my experiences to be much more comfortable and haven't hailed a cab since. Giving testimony about how he's a "millionaire" and asking for help probably didn't help much either.
It’s funny that you said “from my personal experience” and later quantify it to “so many... were from rude cabbies...” btw, there are bout 15k medallions which means that there about 15k yellow cabs. There are 2 shifts (12hrs each) and 99% of the time each driver does one shift. Hence, in totally, there about 30k+ drivers -having a bad experience w one or 2 cabbies doesn’t equal to many. Yes some are rude, inconsiderate etc but it doesn’t justify the level debt the system put them in. Cabbies have generated some much revenue for TLC (through: fees, license renewals, mandatory 4 times in a year TLC inspections, tickets etc) and NYC... so it’s only right for the individual owners to get some sort of relief or bailout.
@@chernojallow6666 I live in NYC, you idiot. 🙄
@@chernojallow6666 Lived in NYC for over 25 years and I can relate to what SK is saying because he’s RIGHT. Sure, not all cabbies are rude but any real New Yorker in the city can count the number of decent rides vs the countless ones that were terrible. Disgusting cabs that smell of cigarettes or the driver or both…because of their monopoly. Competition from Uber and other ride share platforms promote affordable prices and options that benefit the rider.
And as mentioned, when a cabbie is screaming about “how it isn’t fair” and that he’s supposed to “be a millionaire” and placing blame like that…it makes me care even less about his situation and justifies me choosing Uber.
@@chernojallow6666 The point is the Taxi drivers did it to themselves in many ways and not thought about giving customers a better service.
Taxi companies in New York treat minorities as 2nd class citizens because they held a Monopoly they're the only game in town (outside of mass transit).
As a non-New Yorker, the entire Medallion program just looks like a scam to me. They don't require the deceptively defined "ride-share" companies to register with the city or to require any of the vehicles to be inspected like any of the cab companies. You have to be insane to be a cab driver in NYC.
theylied1776 It was and it worked for a long time.
It was a scam exposed by ride share apps
Monopoly destroyed by uber.
Taxi d4ivers were like millionaires. Rats, let them cry now
I'm months late but all ride share companies must abide to TLC laws and rules. Which include a vehicle inspection.
There was a loophole in the law so they could operate
OK, so he bought the medallion in early 2003 for $331K and in 2020 he owes $651K. So this man clearly used his medallion as an asset to borrow money against while it was "appreciating". Now he blames NYC?
Not necessarily, depending on the interest rate (credit cards upwards of 25%). It will continue to accrue over time.
@@shellybaby5th He said he brought a 3 family house in the Bronx, so its very likely he borrowed against his Medallion when it appreciated.
He most likely refinance his medallion to buy his 3 family house.
He refinanced too many times I am sure and also which increased his interest rate. I think it’s 12% or more. Most likely he used medallion as an asset for his home. He could have paid off entire loan by 2009. He invested more than he can handle. I am sure he invested in two separate house in bronx and also invested in real estate in his native country. He could of won easily but he mismanaged his investment.
How does an imigrant even save up 331K lol wtf
He is so sincere my heart aches for Mohammed.Sad.
Mohammed was my taxi driver when I was In NYC. yes he's very nice 💞😥
This is just awful,the city knew it was a scam.I don't like evil people.
@@davidjames3777 he needs that debt cleared..he put up money and his intent was to be an entrepreneur 😕
@@rasheeda1303 I concur.
Talk about SCAM! That whole thing has got to be a SCAM! They owe that dear man and his family!
If I were in his shoes I would default on the loan and declare bankruptcy. Yeah that's bad for his credit, but owing 600,000 you can never pay off is worse. CBS why aren't you setting him up with a debtor's attorney ?
You can't declare bankrupt on government loans.
@@toonses4300 Declaring bankruptcy and the non-dischargable part of some of the government loans is two totally different legal proceedings and concept. While student loans (federal or private) and most taxes are non- dischargeable ( even then, there is a clause for hopeless exemption situation) , I don't think a medallion as collateral loan is non- dischargeable after one declares either Chapter 7 or Chapter 13 bankruptcy! Especially now after the politicians are under intense spotlights exposed by several media and the loan is deemed " predatory" by Congress!
Why aren't you asking CBS to pass along your contact information to him so he can contact you and you can set him up with a debtor's attorney?
@@zelmoziggy because practice law in Texas.
@@zelmoziggy thank you for your trust but I am not an attorney ( it's illegal to solicit or disperse legal info, services in many states without a license), only work as civil servent in NYC's Taxation and Finance. I did all these research bc I felt for all those poor hardworking medallion drivers. If I can gather all these from Google, I do believe the real affected victims are way ahead of me. There is also a bill sponsored by Gregory Meeks ( please go to House.gov) earlier this year. Keep our fingers crossed that help is soon on their way!🌈
I was a yellow cabbi years ago. Right before Uber took over. Greatest job. Met so many amazing people. Made loads of cash. One of the best jobs. Thank good I got out before it all went down hill. I feel bad for those guys. Goofily they come out on top.
how many blacks did u not pick up or refused their service?
Muhammadu is an amazing man. I respect his work ethic. I don’t think I’d be as strong.
I feel the same way.
he should've work smarter not harder.
you respect losers
Judge Judy: “If it sounds too good to be true, that is because it is.” (She borrowed the line from the Better Business Bureau).
I don’t have the money to help these cabbies. I wish people, celebrities, and politicians could help them.
I don’t think need your money..... what most of them is asking for is for the system that trapped them in to provide some relief or bailout. After all they have generated more for the city (MTA tax for each pickup $2.50 each driver averages 20 trips per shift, toll revenue etc) than they got back.
My dad is a Yellow driver, I told him to stay home and collect unemployment
Smart.
I'm pretty sure your dad has principles. BTW your Dad would have to LIE and say he can't find work.
@@mike856ms they wouldn't be lying. The report says that the demand for taxis dried up because of the virus.
@2conscious i can see you come from a humble beginning this is why i really like your comment. ( not trying to be sarcastic btw.)
@2conscious everyone looks away
Class Action lawsuit! Bankruptcy, give that ball back and walk away with no guilt
Monopolies are wrong, whether it's a private monopoly or a public monopoly. Sorry.
I'm a trucker this going to be me in 10 years.
The west african taxi driver's positivity is really something to behold. He's been through so much, but his voice is still so strong. While me and my friends are struggling with depression this pandemic, I still appreciate hearing his voice and telling his earnest story
His energy is amazing. I was thinking the the same thing.
The way the cookie crumbles. Investments are risky business.
The medallions in New Orleans were over $40,000.
suckers got taken for the medallion
This New Yorker was glad to see Uber and Lyft come along. Like Gypsy cabs they will take you anywhere in the 5 boroughs. The Yellow cabs wouldn't. I stopped supporting them.
Facts. I've lived in the the south bronx for 25 years. Until 5 years ago it was super rare to see a yellow taxi around here. And I live by yankee stadium. Now I see then around almost daily. Game day or not
Combined with the fact that you have motorized bikes, carbon fiber bike, and vehicles much smaller than a car is what is killing the taxi.
It did impact but not entirely. Uber + Pandemic = smoking gun
I couldn't get a cab because..........& I'll leave it there 😔😞😞
It's Karma bro...They are getting theirs now and they will suffer...I'm so happy u have no idea
@@b.s.c.l2959 jesus it must be personal with you!🤔
@@Theonlyrealdanne Yeah it is. Every black that got passed by because of their "fear" hurts me even if it didn't happen to me personally. Its personal and I would never support NY cabbies
@@b.s.c.l2959 yeah I have two situations once where I was going home at night coming from work & they didn't even open the door & another where I was working and helping with deliveries trying to get a ride but couldn't get them to be flagged down but as soon as my boss came outside they finally realized it was safe......😖😖😴so yeah this was bound to happen to them
Exactly. And that's why I don't feel sorry for cab drivers.
Gypsy cabbing is illegal in most cities for a reason. You don't make someone buy a business license for several hundred thousand dollars and later allow gypsies to do it without a license. The license excludes others from operating, that is why you buy it. If you bought a house for $400,000 and spent 30 years paying it off how would you feel if they gave away homes for free after you paid off yours?
Praying for things to work out!
The biggest franchised monopoly of all times . The nyc medallion. Amazing !
It's about time someone came forward, and said something on the Medallion.
GetA Job Its been said a long time ago and no one cares because there was money to be made.
It looks like the journalist is social distancing from his laptop.
Ask trucker Owner Operators how the Trucking Business is treating them.
How is it treating them? I don’t know anything about that industry.
Huh?
There's Lease to purchase scams, regulations that make it hard to earn a living. Similar to the gentleman driving the yellow cab, truckers slowly going out of business.
Trucks will be driverless by 2025...
Boy i hope they are not driverless. We had an extremely experienced driver blow over in bad wind.
They need to change the design of the cab like cars from the 1930s .
That’s the saddest piece I’ve seen in a while. Ted Koppel’s still got his magic creating these pieces.
Once again, welcome to bankers world, they do not give a damn about you. And they will get away with it still. Default on the $650K, you have started from Zero before, and you can do it again, you have the strong backbones. You” re-inspiring me Mohmmed.
He bought the medallion with 350k more or less.
2008: Medalion price doubled.
2013: Medallion priced at 1,350,000
2020: He owes 651k toward medalion loan?
He clearly mismanaged his investment.
welcome to america, you can become a millionaire on paper, but in reality you owe us a million and you need to work till you die to pay us. have a nice day :)
And they’re still dying to get here.
@Rick Y nightmare
No one is forcing them
And yet REAL millionaires don't pay taxes, and write off everything as work or business affiliated....wow.
That's what happen when you charge ppl $25 for a 7min ride...
Wait did you take a yellow or black cab ?
Medallions should have never been allowed to be resold. If you want to drive, get in line, when someone gets another job or retires they return the medallion to the city and the city calls up whoever is next in line. Creating a sub industry that lets people resell and lease out their medallion is just stupid. Imagine someone buys ten medallions, sits on them for years and then rents them out. Why is he making money if he isn't driving? So much corruption
No, it was the city backing Uber and Lyft
I remember talking to a cab driver years ago when medallions were $600k. I did some simple math and it was pretty obvious to me that you could never recoup that. He was convinced that was the way to go. I do feel these guys have been duped by a system. Rather than go to court with the State, the city should probably sit around a table and try to give these guys as much loan forgiveness as possible.
I agree with you sir.
Yea buying medallion doesn’t really make sense when you can do Uber. no need that 600k investment (it’s probably worth way less than by now) with Uber u just need $625/ 2 year license instead of 600k. Yes I know u can’t take street hail with Uber but who does street hail these days? When you can wait in the comfort of ur home knowing that a car is coming to pick u up in right at ur door.
Let me get this right. You buy the medallion on a loan. You triple you money in a couple of years. You don’t sell it while the selling was good. And now you are complaining.
Sorry. You bought this on yourself.
not only that but he bought it for a bit over 300K but now owes something like 650K. he wasn't, on average, paying down the load but increasing it!
My friend owes $200k on his medallion that gets rented out. He still pays some money because he can't break even.
I moved from my beloved Manhattan 20 years ago and at that time I would refuse to ever get an Uber out of allegiance to yellow cab drivers in NYC. Unfortunately the taxi Medallion system was the monopoly. I have since lived all over the world and support workers where I can but NYC should have arrested this travesty years ago. I wish the best for all New Yorkers, be steadfast and headstrong .. be New York strong! Blessings to this beautiful family and all.
If you see the companies that finance medallions , they are not mainstream banks.
Without saying names, the medallion prices soared over the years anchored on a few factors ..
1. Demand for licenses kept increasing year after year. Supply, unless the city does issue additional licenses , is fixed.
2. There is talk a lot of money laundering into the business.
3. The taxicab business traditionally underreports taxes , from the fleet owner down to the naive driver.
3. Concentration of licenses in the hands of few. In a perfect world, every taxi driver would be an owner / operator. In reality , it works the other way around. Predatory lending, paper companies where an indebted license owns another. Legal shielding and concentration make this business s perfect target for money laundering.
The poor African driver is caught into this web. He will loose the license , a well bankrolled one will snag these delinquent licenses , and , just in time Uber goes bad, someone will end up with the lion share of these licenses.
Government bonds are the next bubble. I feel sorry for the people that buy long-term government bonds around the world at suppressed interest rates. Inflation has to get out of hand.
Fat dispatcher guy, “two caa, two caa” while smoking a cig in a box 😂
I hope that doesn't jeopardize the future of Cash Cab and Ben Bailey... he's NOT just the host, he drives, too.
I love that NYC spirit!
🗽🍎
these cabs are too expensive anyway, its time this world starts changing
I cant even believe this is real
Excellent example of innovative, beneficial cooperation.
Judge Judy: Take a loan only when you can pay it off.
Dave Ramsey: Never borrow money!
This is exactly what he believed in: to pay it off! No one knew that Corona Virus will come in 2020... He was able to make down payment and to get approved for his house. Declare bankruptcy, Mohamad!
Judge Trudy: Take a loan only when you can plead victimhood and get those dogooders to force other people to pay it off through higher taxes.
unbelievably devastating piece.
these drivers deserve everything.
Thanks for highlighting this
I do feel a little sorry for these drivers. However, I feel worse for workers and their families who lost their manufacturing jobs in the rust-belt areas. They had a good job but that job was sent overseas or to Mexico. They are left twisting in the wind .
You didn't want to take me to Brooklyn. I have Uber now. Karma is real!
U probably have the same driver.most of the young cabbies all work for Uber and Lyft now.👎
Uber has your name address and credit card info , no chance of you not paying and running .
People should use licensed 🚕 instead of less reliable fly by night independent contractors. Safety , worth the extra buck or two.
Here's the rest of the story.
Uber, Lyft, didn't fall from the sky. The De Blasio administration created another tier of taxis under the guise of technology, unrestricted, totally unchecked, and still under-regulated leaving the yellow taxi industry in complete disadvantage, and have resulted in suicides, heart attacks, bankruptcies; Yellow taxi owners and drivers were locked out of the American Dream long time ago.
NYC has to restore the yellow taxi industry or it has to compensate everyone.
Bubble! When it bursts the correction begins affecting small % of medallion owners, but doesn't destroy the industry.
FLASH NEWS
Banks did not allow app Companies to get into the taxi market.
I drove a cab in New Orleans for a while and one couple got in my cab and said oh thank god an American cab driver. They said foreign cab drivers are so rude they stay on the phone the whole time and don't say a word to you.
In NY They smell so bad
G I doubt that you bathe regularly or wash your legs in the shower. Im pretty sure you also think getting in a swimming pool is considered a bath and chlorine is a good substitute for soap. Shut up stinky.
@@user-zy3nv1jy1m OMG so true lol
how many blacks did u refuse to pick up?
Um okay this is racist. Define foreign bc anyone can be foreign idiot.
Should have sold the medallion while he was ahead, and worked for Uber.
😭 taxi drivers my heart is heavy for you. Prayers for you all.
With the Crown Victoria gone the Taxi has literally lost it's appeal. It used to be cool because taxi's were big comfy sedans and so iconic, now there's no point in taking a taxi, just take an uber.
The guys doing better than me.and I been in America 51 years.
I feel bad for guys like Mohammed who worked hard, believed in themselves and played by the rules. But the taxi medallions turned into a scam during the Bloomberg administration. And if you really understand the dealings during that mayoralty, you'll find a lot of schemes the hurt the poor & middle class.
However, the yellow taxi system is the reason for Uber and Lyft because the yellow taxis were a monopoly on taxi service and didn't serve all in New Yorkers by design. Another cause of yellow taxi decline was the improvement & expansion of public transportation, particularly to the NYC area airports.
I love the camry 12:55
it's a supply and demand issue with business, nyc let uber/lyft flood the streets with so many drivers everyones wage went down. the number of cabs was always capped and they had a competitive advantage to traditional car services in terms of convenience of the street hail. then apps came along and took away that competitive advantage. to make it worse it seems like nyc constantly tries to put their hands in our pockets. just look at all the money we give to the city and mta. why do i fund the mta as a taxi driver? they are my competition.
"The loans were never stable never sustainable"
Tell me, how many medallion owners couldn't pay their mortgages, committed suicides, bankruptcies, before 2015?
The malfeasance of the CITY is to blame not banks.
It sounds like Uber and other similar services to taxis have taken away much of the old school taxi business. Thank goodness for technology. If not for technology, we would still all be riding horses. And at some point, Uber will be displaced by some other technology. Competition for taxis is a good thing!
Yes prices for taxis was getting ridiculous because they were a monopoly. Serves them right because they were taking advantage of the market for a long time.
not for taxi drivers. ride share did not improve the economy. it did not create jobs and income overall because jobs and income were lost
Same with AirBnB. I live in the very scenic Delaware River Valley. All the B&B's are suffering.
Uber fares don't come close to paying a working wage.
Taxi s require background checks,
Vs uber and Lyft nobg checks, and they crazy driver s
I understand feeling sorry for him but buyer beware amirite?
So grateful for my secure living wage job in peaceful New Zealand right now I am so lucky :)
Heart broken
i like the way the investigator talks
Muahahaha what taxis get for years of bad service!!
Self driving cars will eliminate driving as an occupation in 10 years
How about regulating the ridesteal industry?
People do not respect cabbies that is fact
He should have left the market
Risk free???
A lie..
We're New Yorkers.
We don't give up.
Since they are rude to the customers. Karma's a botch.
sad and scary.
SON OF A BIIOOOORCHHHH
Sounds like "Elmer Fudd" 😂😂😂😂😂😂😂😂😂😂👏👏👏👏👏👏👏👏👏
Wow Wow $ 1,000,000 $ my early days it was $5,000.00 you could make a few bucks then, not any more, especially with fiat dollars?????? poor guy.
Medallions went from $200,000 to a $1,000,000 and the revenue didn't change at all.
Now THIS guy is an American. Respect.
This is why they hate Lyft and uber....🤔
Naa, they dislike you guys because u guys are slow and seems to be lost when u in downtown (like u don’t kn where u going because unnecessary traffic) but I think when u guys meet up in the masjid it’s brotherly love.
Can we set up a Gofund Me account for this guy?
Why...he got greedy.
Taxis provide terrible service. They need to disappear.
What service do you need? cabbies take you from place to place. we need you disappear.
Reminds me of Student Loans. 🤔
Bail out cabby's
This guy borrowed against his medallion value while it was rapidly appreciateing and used it to buy rental properties.
He made a bad investment and used it to take on more debt then he can handle. Doubling down on a bad investment strategy.
Cover your nose Sir❤️😷😔
Wait till China raises the price on vehicles. Taxi service will make a comeback, watch.
God bless him
The NY City should bail out medallion taxi owners. They created a bubble and under the idea that the city would produce a scarce market by regulating it with medallions. The CITY failed to protect this scarce market by letting Lyft, Uber into the city
Most drivers dont like to get out of there cab to load luggage in there cab .I know I was one of them !
It’s a courtesy; u’re paid to pickup and drop people. Help women, the elderly and the weak. Everyone else should load their luggage’s in the truck 🤷🏽♂️. Time is money and getting out to help someone who is capable of doing it is time wasting.
I never liked taxi driver's very rude disrespectful i wouldn't care if they didn't make a brown penny
TES KOPPEL YOU HAVE THE MONEY TO HELP THESE PEOPLE ❗️❗️❗️❗️❗️ 🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻😃why don’t you???????
Haha Haha everybody lost the job
How much did tax drivers earned before covid? How can anyone jusitfy investing 300k to drive a cab? Smh 🤦♂️
people who think rideshare is good for the economy are missing the big picture. for every new rideshare job and income, a job and income was lost in the cab industry, and in some tourist hot spots like LasVegas, Washington, D.C. etc... hotel doorman saw their tips decline. rideshare technology moved jobs and income from one group to another group, it did nothing to improve the economy overall
It's all a paper tiger rides hares lose money ever year. They changed their structure with the drivers a few times already. Uber has a huge turnover of people who had to make an investment in a car and everything!
First uber and now this.
This is so tragic
Khazar Kalanik has destroyed thousands of human lifes.
Millions!! Impact is globally
America
Nothing left in New York leave while u can
It will get back up, will take a while but it will get there