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The Collapse Of The NY Taxi Cartel

Tyler Durden's picture




 

Submitted by Pater Tenebrarum via Acting-Man.com,

The Market Breaks Monopolies Government has Created

It turns out that it is not a good idea to create speculation revolving around interventionist government policies. Ever since Uber appeared on the scene, the previously coddled taxi industry is in trouble – and apparently nowhere more so than in NY City.

 

cabx-large 2

In NYC, there is a special situation: in the 1930s, the city created the “taxi medallion”, artificially limiting the number of taxis allowed to work in the city. These medallions have become objects of speculation and have been thoroughly financialized.

As Jeffrey Tucker reports, Uber has apparently busted the taxi cartel and destroyed the medallion market in the process:

“An age-old rap against free markets is that they give rise to monopolies that use their power to exploit consumers, crush upstarts, and stifle innovation. It was this perception that led to “trust busting” a century ago, and continues to drive the monopoly-hunting policy at the Federal Trade Commission and the Justice Department.

 

But if you look around at the real world, you find something different. The actually existing monopolies that do these bad things are created not by markets but by government policy. Think of sectors like education, mail, courts, money, or municipal taxis, and you find a reality that is the opposite of the caricature: public policy creates monopolies while markets bust them.

 

[…]

 

In New York, we are seeing a collapse as inexorable as the fall of the Soviet Union itself. The app economy introduced competition in a surreptitious way. It invited people to sign up to drive people here and there and get paid for it. No more standing in lines on corners or being forced to split fares. You can stay in the coffee shop until you are notified that your car is there.

 

In less than one year, we’ve seen the astonishing effects. Not only has the price of taxi medallions fallen dramatically from a peak of $1 million, it’s not even clear that there is a market remaining at all for these permits. There hasn’t been a single medallion sale in four months. They are on the verge of becoming scrap metal or collector’s items destined for eBay.”

(emphasis added)

In the meantime, the “medallion magnates” (people who in some cases control hundreds of medallions) and others have come crying for a government bailout. It turns out they borrowed a lot of money using the medallions as collateral – a potentially deadly mistake as has now turned out.

Here is an interesting video by Reason TV on the topic:

The collapse of the NY Taxi cartel

 

Conclusion

It is interesting that the free market has actually found a way to undermine a cartel that up until recently appeared to be completely safe. In some cities, Uber is being fought tooth and nail to protect the sinecures of the established taxi industry. It is a microcosm of the cronyism that is the rule almost everywhere these days.

Just think about how greatly our lives would improve if all the regulations that have been designed for no other reason than to protect established businesses against competition from upstarts were rescinded.

 

 

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Sun, 09/06/2015 - 15:52 | 6516063 DetectiveStern
DetectiveStern's picture

On the downside instead of taxi money staying in the local economy with Uber it is hoovered up by Wall Street. 

Sun, 09/06/2015 - 15:58 | 6516077 y3maxx
y3maxx's picture

Time to nail gun suicide NY Uber drivers.

Sun, 09/06/2015 - 16:10 | 6516091 Looney
Looney's picture

Also, the Liquor Licensing scam should be abolished.

Anybody should be able to order a drink with their phones.  ;-)

Looney

Sun, 09/06/2015 - 16:26 | 6516132 Beam Me Up Scotty
Beam Me Up Scotty's picture

"It turns out they borrowed a lot of money using the medallions as collateral – a potentially deadly mistake as has now turned out."

Who's problem is that?  The BANKS.  They loaned OUT big money on this worthless collateral.  They should be the ones suffering.  I'd walk away if I owed the bank on these things and let THEM eat it.

Sun, 09/06/2015 - 16:36 | 6516148 duo
duo's picture

Does this mean they can finally connect LaGuardia airport to the subway system?

Sun, 09/06/2015 - 16:41 | 6516158 JungleCat
JungleCat's picture

No, that could hurt the parking revenue that the airport authority gets.

There are other special interests, not just the medallion owners.

Sun, 09/06/2015 - 17:31 | 6516314 Bollixed
Bollixed's picture

Anyone remember this? 'I will f***ing destroy you': Bloomberg unleashes threat against taxi tycoon and hints at revenge plans after he steps down as mayor.

http://www.dailymail.co.uk/news/article-2329393/I-f--ing-destroy-Bloombe...

Mon, 09/07/2015 - 03:26 | 6517671 ConfederateH
ConfederateH's picture

Calling all progressives and other crypto-bolschevics like Jesse and Bruce Krasting:

This Medallion scam was instituted in the 30's, clearly under Roosevelt, your god.  His legacy is still wreaking havoc on not only the prosperity and freedom of the American people, but his unleashing of the communist labor unions (think also NY taxis) in the 30's is one of the primary causes of the moral rot that has destroyed the country.

Now just wait for the SS. Social Security to hit the iceberg.

Sun, 09/06/2015 - 19:28 | 6516346 ThroxxOfVron
ThroxxOfVron's picture

Yes. there are other special interests that will be damaged.

The mechanics that have contracts to work on the taxis.

The inspection stations that pass the cars for cash without bothering to look let alone hook up the exhaust machine, etc...

The gas stations and car washes near the dispatch centers.

The advertisers that put signs on top of and into the much hated video media kiosks that assault the riders in the back of the taxis...

 

 

Sun, 09/06/2015 - 21:16 | 6517030 Never One Roach
Never One Roach's picture

Speaking of scams, the entire probate industry in NYC is a huge scam.

 

http://nypost.com/2012/07/29/how-insiders-snatch-millions-from-estates-i...

Sun, 09/06/2015 - 23:20 | 6517385 A Nanny Moose
A Nanny Moose's picture

This is expected, when there is a monopoly on adjudication. Only the lawyers win.

Sun, 09/06/2015 - 16:57 | 6516206 logicalman
logicalman's picture

LaGuardia is a shit hole. Demolish & start again from scratch.

Sun, 09/06/2015 - 17:58 | 6516389 nmewn
nmewn's picture

It was a shithole when I flew into it in the 70's, I can only imagine what it is now.

Sun, 09/06/2015 - 19:03 | 6516609 Stuck on Zero
Stuck on Zero's picture

I preferred LaGuardia when TWA was still flying.  That was a great airline.

Sun, 09/06/2015 - 20:07 | 6516808 wintermute
wintermute's picture

@duo

Such a good question I did some research for you..

New York will build an AirTrain to connect the hellish human zoo known as LaGuardia Airport to civilization, Governor Cuomo announced this morning at a breakfast hosted by the Association for a Better New York. "You can't get to LaGuardia by train today," Cuomo said. "And that really is inexcusable. That is something we're going to correct over the next several years." ..............  The MTA had no comment on Cuomo's announcement today

http://gothamist.com/2015/01/20/airtrain_laguardia_jfk.php.

Sun, 09/06/2015 - 17:09 | 6516242 BennyBoy
BennyBoy's picture

Looking forward to when this happens to the medical/pharma/insurance cartels.

Sun, 09/06/2015 - 18:05 | 6516402 atomp
atomp's picture

Quadruple baypass app!!!

Sun, 09/06/2015 - 21:03 | 6516979 Christophe2
Christophe2's picture

Better yet: there is often a FAR BETTER alternative to the risky and hugely expensive operation your corporate doctors will have planned for you.

Think of the hundreds of billions in losses that will come when people start largely opting out out chemo/radiation/operations in favor of things like Rick Simpson Oil, which has a greater than 80% success rate with no damage being done to the body, either, and from a plant you can grow yourself, at practically NO COST...

=> The 'app' is called forbidden knowledge, and it can't be stopped!

Peak bullshit has long past, and all the bullshit artists of the current generation are going to soon be left holding their nasty shit with hardly anyone still interested in any of it (unlike before).

Fun times!!!

Sun, 09/06/2015 - 21:24 | 6517045 Never One Roach
Never One Roach's picture

Some hospitals costs are pretty high here and ultimately will be competed out. My neighbors mom flew to Thailand and had her hip replacement there for a total of $18,000; that included a "Ritz-style" hospital room/food and she said excellent care by both British and American doctors. I think she said it was Chiang Mai. It's becoming more popular and safer as more Western docs opt for that life style and patients are willing to make the effort.

 

My experience is pretty good negotiating with the doctor himself/herself, but hospitals won't budge much. They are cut throat. That's why more docs now set up their own surgical centers where they can give you the same service for less then 50% of what a hopsital would charge. I guess Thailand is even cheaper for major surgery.

 

Sun, 09/06/2015 - 17:17 | 6516264 indygo55
indygo55's picture

Yeah. Send the medalion back to the bank, tell 'em they can have the collateral and take the cab, change the light to "UBER", sign up as an Uber driver and get back to work!

Sun, 09/06/2015 - 16:38 | 6516155 Dazman
Dazman's picture

I think you can. They have liquor stores that deliver here in FL. Well actually I'm in Spain right now on vacation (not sure if they have it here), but back home in FL they do.

Sun, 09/06/2015 - 16:42 | 6516164 Long-John-Silver
Long-John-Silver's picture

Speaking of Liquor, after the EPA mandated 15% ethanol mixed in gasoline a funny thing happened. It became cost effective and profitable to remove the ethanol from gasoline and sell it as Moonshine. That's all ethanol is, Moonshine Liquor. The process is simple. Purchase gasoline, mix it with 20% distilled water by volume, agitate well and allow it to settle into three different levels. The bottom layer will be excess distilled water. The Second level with be a hazy mix of ethanol and distilled water. The Upper level will be pure gasoline. You can add a little non-alcohol octane booster to the gasoline and use it in your vehicle. Pure gasoline is actually better than it was with the ethanol in it. Your gas mileage will improve from 10% to 15% and it's better for your vehicle. Save and reuse the distilled water and run the ethanol and water mix through a still the same way you would run mash in the boiler. You will collect pure ethanol from the still leaving distilled water in the boiler. Reuse the excess distilled and boiler water to mix in another batch of gasoline and ethanol mix.  

Sun, 09/06/2015 - 17:13 | 6516254 tarabel
tarabel's picture

 

 

Interesting concept. Hadn't thought of that. Always good to learn something new and different. Thanks.

Sun, 09/06/2015 - 17:20 | 6516278 indygo55
indygo55's picture

Sounds good but what about all the additives? Theres all kinds of chems in gas and its not just mixed with the gas. 

Sun, 09/06/2015 - 17:55 | 6516379 Long-John-Silver
Long-John-Silver's picture

The additives are lighter than water and ethanol. There is no way those additives will remain in the ethanol or water.

Adding ethanol to gasoline was done during WWII in an effort to extend gasoline supplies and boost octane. Because military equipment had such a short life expectancy in combat no one worried about the damage it did to engines. History books don't record WWII Soldiers, Sailors, and Airman that processed ethanol out of gasoline and drank it with no ill effects back then. They were known to produce alcohol from potato mash in stills but taking it out of gasoline was easy and there was little chance of getting caught unlike making Moonshine from mash that had to be disposed of and could be smelled miles away.   

Sun, 09/06/2015 - 19:05 | 6516619 Stuck on Zero
Stuck on Zero's picture

Don't forget the Navy and their torpedo juice.

Sun, 09/06/2015 - 19:42 | 6516731 NoPension
NoPension's picture

So what is put in " denatured" alcohol to prevent it's consumption?

Sun, 09/06/2015 - 21:17 | 6517033 mc225
mc225's picture

is denatured alcohol a wood alcohol?

Sun, 09/06/2015 - 21:58 | 6517162 StychoKiller
StychoKiller's picture

Methanol != Ethanol

Sun, 09/06/2015 - 23:45 | 6517425 WOAR
WOAR's picture

All kinds of shit that makes it taste bad and/or kill you. Like methanol instead of ethanol.

Sun, 09/06/2015 - 21:06 | 6516994 Isotope
Isotope's picture

That would be an incredibly bad idea for too many reasons to discuss, but it includes the effects of cosolvents, how additives partition in the fuel/water mixture, and azeotropes during distillation.

Sun, 09/06/2015 - 23:49 | 6517433 WOAR
WOAR's picture

What azeotropes are we talking about, here? They are cutting gasoline with ethanol. Separating out the gasoline before distilling removes the risk of gasoline, and since it's just ethanol...what azeotrope is bad in this concoction? I don't see methanol or any other derivatives in this mixture.

Tell me specifically what cosolvent is involved that would be left with the water and ethanol, so I can research it?

Mon, 09/07/2015 - 01:32 | 6517571 oooBooo
oooBooo's picture

I wouldn't drink the ethanol that process produces, I would discard the ethanol using the process simply to have the pure gasoline to keep small engines from being damaged.

Sun, 09/06/2015 - 16:05 | 6516084 RafterManFMJ
RafterManFMJ's picture

I thought Wall Steet was in New York?

Sun, 09/06/2015 - 17:00 | 6516220 DetectiveStern
DetectiveStern's picture

You think the banks keep it there? Or do they use it to invest more.

Sun, 09/06/2015 - 16:05 | 6516085 Nostradumbass
Nostradumbass's picture

Wait. What?

Don't the Uber drivers and their car's licensing fees, fuel costs, maintenance all reside in the local economy?

How does Wall Street get the profit?

 

Sun, 09/06/2015 - 16:46 | 6516167 Buckaroo Banzai
Buckaroo Banzai's picture

It's not "Wall Street" that profits, rather, Uber executives. Uber shareholders will do well until the market stops valuing this shit at insane levels.

I suppose that customers are the winners here, although I seriously doubt that your average uber driver knows the city streets as well as your average NYC taxi driver. NYC Taxi drivers haven't made a good living in decades (unless they owned the medallion on the car they drove-- and now that medallions are careening towards worthlessness, even they are fucked), and now things will get even worse for them. Uber is a colossally shitty deal for Uber drivers who probably make about $7/hr once you factor in gas, maintenance, and depreciation-- so they are losers as well.

All this really amounts to is a giant wealth transfer from the medallion owners to Uber executives.

Sun, 09/06/2015 - 17:02 | 6516224 ThroxxOfVron
ThroxxOfVron's picture

"All this really amounts to is a giant wealth transfer from the medallion owners to Uber executives. "

 

I concur.

Sun, 09/06/2015 - 21:44 | 6517111 cynicalskeptic
cynicalskeptic's picture

Uber has actually benefitted most Taxi drivers.   Most Taxi drivers pay a fleet owner to 'rent' the taxi they drive.   The Medallion owned by the fleet owner gives them the legal 'right' to have a yellow cab but they make their money by leasing the cab out.   Since Uber came into the NYC market, there's COMPETITION.  Drivers can drive a yellow cab or work for Uber.   The fee paid by drivers has dropped as Taxi owners are finding it harder to get drivers for their cabs.   The medallion OWNERS - rarely individual cab owners these days - are the ones hurting.   Their government imposed 'monopoly' is eroding - fast. Green cars and now Uber are filling the need that Yellow Cabs were not.  It was all too common to have Yellow Cabs refuse to drive to outer boroughs and finding a cab at some times in some neighborhoods was always a problem.  Now, you call Uber.

Sun, 09/06/2015 - 17:04 | 6516228 JohninMK
JohninMK's picture

As there is probably a continuing market for taxis in NYC perhaps this price crash will be an opportunity for owner/drivers to own a medallion for themselves.

Sun, 09/06/2015 - 18:09 | 6516424 TheFutureReset
TheFutureReset's picture

If that is true, then there is a market for Lyft or any number of new competitors. Drivers would leave en masse to better paying alternatives, and a market for drivers would be created. They can't be that hard off, or the market would create a solution.  

Sun, 09/06/2015 - 16:07 | 6516087 Thisson
Thisson's picture

No, the money goes back into the consumers pocket. Uber is cheaper cleaner and better in almost every way.

Sun, 09/06/2015 - 16:40 | 6516133 ThroxxOfVron
ThroxxOfVron's picture

Uber is acting as a gate keeper and taking a cut -or it wouldn't exist.

Uber is merely supplanting the medallion cartel.

One cartel is merely being exchanged for another..

When Uber, like the .GOV managed medallion/license cartel, is itself denied it's skim: THEN the Consumers AND Service Providers will have what BOTH deserve and want: FREE ENTERPRISE & FREE ASSOCIATION.

Sun, 09/06/2015 - 17:01 | 6516223 Skateboarder
Skateboarder's picture

In a sane world, services like "Uber" are developed and maintained by "the brotherhood of man" for the benefit of all. Unfortunately, we don't live in that world.

Such abundance, and a chance to do good - all flushed down the toilet for the temporary monetary benefit of a few.

Sun, 09/06/2015 - 18:07 | 6516416 duo
duo's picture

Exactly.  If there was a bulletin board where drivers could connect with riders, the whole Uber "value propsition" would be toast.

95% percent of "Tech" nowadays is paying people to do what your mom used to do for you.

Sun, 09/06/2015 - 18:22 | 6516467 TheFutureReset
TheFutureReset's picture

It is as simple as cities having their own Uber type website (not public, but a Uber for every city). A free market should disrupt large slow organizations in favor of local efficient ones. The questions of scale are not a concern in an open source world, bc technology will cover that.

Businesses that are defined as being inter-regional or international would have to scale, but then again it could be a conglomerate of local businesses connected through technology. 

We are on the cusp of a whole new economic dynamic as long as it's money isn't centralized. (bitcoin or gold) 

 

Mon, 09/07/2015 - 00:14 | 6517486 FreedomGuy
FreedomGuy's picture

Not even close. Uber is a voluntary arrangement. Uber organized the concept, apps, legalities, etc. It is a voluntary relationship. If you do not like Uber, drive for Lyft. If you do not like either, run a traditional cab or limo. Uber cannot be maintained with the protection of government unlike the medalion program. 

It's not a skim any more than your shift leader or manager is a skim off the sales. 

 

Mon, 09/07/2015 - 01:37 | 6517576 oooBooo
oooBooo's picture

Uber provides the service of connecting drivers to customers. It's a voluntary association for mutual benefit. Uber has no defense against some other company developing it's own system and software to do the same thing. Which why there is Lyft.

Sun, 09/06/2015 - 16:51 | 6516190 Buckaroo Banzai
Buckaroo Banzai's picture

Cheaper? Maybe, for now. Cleaner? After 5 years of living in NYC, I never had a problem with a dirty cab. They were always clean. Better in every way? Extremely doubtful, as NYC taxi drivers were real professionals who knew the streets and how best to get around. Uber drivers are part-time amateurs.

Sun, 09/06/2015 - 17:00 | 6516217 logicalman
logicalman's picture

Can't beat London taxi drivers for knowing their shit.

They call it 'The Knowledge'

 

Sun, 09/06/2015 - 17:27 | 6516298 indygo55
indygo55's picture

I agree with you on that in Lindon. Especially London, what a colossally fucked up place to drive around in. 

Sun, 09/06/2015 - 16:14 | 6516104 sgt_doom
sgt_doom's picture

Of course, this is only done against certain lower-level industries, which normally involve unions, etc.

At the highest levels this has only gotten incredibly worse.

Take, for instance, the TNEC, or the Senate's Temporary National Economic Committee, which FDR (President Franklin Delano Roosevelt, the New Deal guy) instigated to research the concentration of ownership, which inevitably led to FDR's last action before he died in office, giving the go-ahead to the DOJ to take legal action (i.e., "United States vs. Morgan et al.") whereby the federal government brought legal action against 17 Wall Street firms, alleging a conspiracy dating back to 1914 (which was when the legislation enacting the Federal Reserve System and the financial structure of foundations and trusts from 1913 legislative session took effect).

Unfortunately, this lawsuit was quashed during the Eisenhower Administration, and today we have a super concentration down to just four firms, or the Big Four:

BlackRock

Vanguard Group

State Street Corp.

FMR LLC (Fidelity)

Sun, 09/06/2015 - 23:10 | 6517372 mvsjcl
mvsjcl's picture

The importance of this can't be stressed enough.

Mon, 09/07/2015 - 00:38 | 6517519 junction
junction's picture

The steady increase in the value of taxi medallions is the result of the Mayor Lindsay administration removing the NY Police Department's Hack Bureau from supervising taxis and creating the Taxi and Limousine Commission, a patronage dump filled with crooks like former city councilman Michael Lazar.  Lazar spent time in prison in the 1990s while he was collecting office rents from the New York State DHCR for Gertz Plaza, a building loaded with asbestos in the basement.  Once the TLC allowed medallion owners to lease cabs to drivers on a weekly basis (something illegal when the Hack Bureau ran things), fleet medallion owners no longer had to hire drivers with whom they split fare income 50/50 or 52/48.  A great racket for decades.

Sun, 09/06/2015 - 15:53 | 6516065 kaiserhoff
kaiserhoff's picture

One down, a few million to go.

Sun, 09/06/2015 - 15:53 | 6516066 Secret Treaties
Secret Treaties's picture

F'ing losers.

Sun, 09/06/2015 - 15:54 | 6516069 RawPawg
RawPawg's picture

as NY Taxi's go,so does the world...game over.

Sun, 09/06/2015 - 16:02 | 6516081 buzzsaw99
buzzsaw99's picture

new york and wall street specifically HATE free markets and competition. it was always a lie.

Sun, 09/06/2015 - 16:07 | 6516086 q99x2
q99x2's picture

Right and Uber is not funded by the NWO.

Sun, 09/06/2015 - 16:08 | 6516088 sheikurbootie
sheikurbootie's picture

Are you fucking kidding?! NYC cabbies suck. Every one I rode in smelled of Paki or Indian curry/spice/vomit/bad breath.  Fucking nasty just like the rest of that shithole called the big apple.  I fucking hate NYC.  Push the button.

Sun, 09/06/2015 - 16:17 | 6516111 Headbanger
Headbanger's picture

No no no..

Keep all the rats where they belong.

Sun, 09/06/2015 - 16:55 | 6516201 Buckaroo Banzai
Buckaroo Banzai's picture

I rode in a lot of cabs over many years in NYC. Is the smelly ethnic cab driver stereotype real? Yes, some were definitely like that, but in my experience the vast majority had decent personal hygiene and kept very clean cabs.

Mon, 09/07/2015 - 00:19 | 6517489 FreedomGuy
FreedomGuy's picture

The cabs in my city are horrendously expensive for short rides. It is generally cheaper to park at the airport than takea  cab ride. I have been in the stereotypical smelly, old, nasty cab driven by a freaking chain smoker. 

I quit talking to most because they did not like to say where they were from and I was wondering if they were legal or not. 

I'd get a ride from most anyone rather than a cabbie.

Sun, 09/06/2015 - 20:42 | 6516914 no1ninja
no1ninja's picture

This is ZH comment after all, you guys hate ALL American cities, and prefer isolated bunkers. 

Sun, 09/06/2015 - 21:08 | 6517006 August
August's picture

NYC is a great place if you are:

1) Very wealthy.

2) Young, and wanting a shot at the above

3) Young, trendy and not very bright.

I personally haven't set foot in Manhattan in thirty years, but the place still attracts talented people, or people who think they are.

Sun, 09/06/2015 - 16:10 | 6516090 Fukushima Fricassee
Fukushima Fricassee's picture

Hot chick , I'd uber that.

Sun, 09/06/2015 - 16:10 | 6516095 khnum
khnum's picture

In this city there are 2 major cab companies to catch either one to the airport from where I live is $90 Uber does it for $60 and  the car will be clean the driver will be friendly and speak english.Now I know the cab companies will say they bought liscences,have to carry insurance,get regular inspections etc but hey when I was a kid there was a local video store that bought up big on beta also.

Sun, 09/06/2015 - 16:15 | 6516108 Long-John-Silver
Long-John-Silver's picture

Watch what happens when Driverless Cars hit the market. People will quickly figure out it can be a money producer when they are not using it. Websites will connect people needing a ride to owners of Driverless cars that will accept payment via the riders smart phone. Soon average people will quickly figure out they don't need to own a car and pay all the expenses ownership involves. It will cost for less to take a ride in a driverless car than owning one. After a few years Dealerships will close as the only customers for vehicles will be Driverless Fleet owners that will buy Driverless vehicles in bulk directly from Vehicle Manufacturers. Auto Parts retailers will follow Dealerships into oblivion as Driverless Fleet Owners will purchase parts in bulk as well at wholesale for use in their garages. Say goodbye to your local Auto Repair Shop as well. Only Fleet owners own vehicles and they have their own repair shops. This will be a social change comparable with the change from Horse and Buggy to Motor Vehicles.

Sun, 09/06/2015 - 16:20 | 6516119 kiwigal
kiwigal's picture

What you're describing is a taxi service. Sure maybe people will let their cars be used but individuals will always want the independence of their own vehicle.

Sun, 09/06/2015 - 16:50 | 6516185 Long-John-Silver
Long-John-Silver's picture

Taxi's without a paid driver. Take the (paid) human out of the equation and transportation via Driverless car gets really cheap. Sure, there will be people that own their own cars just as there are people that own Horses. Google the cost of owning a Horse.

Sun, 09/06/2015 - 20:07 | 6516809 wendigo
wendigo's picture

Owning a horse is actually pretty cheap if you have enough land to support it. 

 

I personally won't get a driverless car. If they're all that's available, I'll get a motorcycle, moped, powered bike, electric wheelchair etc. 

Sun, 09/06/2015 - 16:21 | 6516122 rejected
rejected's picture

I see hundreds of driverless cars everyday going back and forth to work...

Sun, 09/06/2015 - 16:34 | 6516144 MANvsMACHINE
MANvsMACHINE's picture

Do they work at the bottom of a cliff?

Sun, 09/06/2015 - 16:18 | 6516112 rejected
rejected's picture

Just think how our lives would improve with a constitutional government that minded its own bees wax.... or maybe no government at all?

Sun, 09/06/2015 - 16:20 | 6516120 Bunga Bunga
Bunga Bunga's picture

It's just cannibalism: Wall St Uber vs. Taxi Cartell.

Sun, 09/06/2015 - 17:04 | 6516123 ThroxxOfVron
ThroxxOfVron's picture

Uber simply represents another form of cartelism.

The drivers are still being skimmed and financialized.

Either the Service Providers are being underpaid for proper service or the Consumers are being over-charged -OR BOTH.

A true free market answer is that individuals advertise independently to offer services and not be corralled into one type of skimming operation ( direct Government license managed ) or another ( Governmnet by Wall St. proxy license managed ).

Without Medallions OR Uber the market would price transportation services without interference or gate-keeping.  

Government wants either direct OR proxy managment as EITHER keeps tabs on the receipts by which taxation is enforced.

NO medallions and NO Uber = little or NO receipts declared for the purposes of avoiding taxation.

Sun, 09/06/2015 - 17:09 | 6516240 MANvsMACHINE
MANvsMACHINE's picture

Do you envision each of the free market drivers creating their own app?

Sun, 09/06/2015 - 17:50 | 6516367 ThroxxOfVron
ThroxxOfVron's picture

"Do you envision each of the free market drivers creating their own app? "

 

Free/Open Source FTW.

 

 

Sun, 09/06/2015 - 20:04 | 6516801 aphlaque_duck
aphlaque_duck's picture

It'll be a p2p network like openbazaar. Possibly an application built on top of openbazaar.

Brilliant people make free software like this (and Linux etc) for the fun of doing it, to shake things up, to make the world a better place.

Do you remember how quickly the UNIX industry imploded when Linux caught on? That's how fast the banking, drug, taxi etc cartels could be taken down by free software.

Sun, 09/06/2015 - 17:14 | 6516249 Banjo
Banjo's picture

Uber simply represents another form of cartelism.

 

 

Yes and strange how people can only see the medallion as the monopoly but not the corporate skimming operation as an alternate model of the same thing.

 

BOTH need to go.

Wait till UBER have more of the market they will like HFT extract the maximum sweat and blood from both passengers, drivers the economy in general.UBER one day will be ready for trust busting.

Sun, 09/06/2015 - 16:34 | 6516143 Ms No
Ms No's picture

Thank you Uber and Lyft for saving us from those stinking foreigner driven heaps of yellow garbage.  Last time I called Lyft it was here in 4 minutes (they give you map and arrival time) the car was immaculate, the driver was sexy as hell, I didn't get driven the long way, wasn't afraid that I may be assaulted, didn't have to deal with cash, tipped after the ride and was allowed to rate and comment on my ride. 

The ellow POS never cared about your experience because they had the market on lockdown.  Maybe people would have been more concerned for the cab cartels if they had hired Americans rather then fresh immigrants who smell like they either just shit themselves or haven't bathed in a week.    

Sun, 09/06/2015 - 17:10 | 6516245 MANvsMACHINE
MANvsMACHINE's picture

Did you drive her the "long way", if ya know what I mean?

Sun, 09/06/2015 - 17:39 | 6516333 Moe Howard
Moe Howard's picture

There was a happy ending to the story I hope.

Sun, 09/06/2015 - 18:39 | 6516520 BidnessMan
BidnessMan's picture

Use Uber because it is safer, less expensive if there is no surge pricing, no cash, the drivers speak English, the cars are not 10 year old rattletraps, I can see where the cars are on my phone, and I get to rate the driver. A far superior form of transportation for hire. Unfortunately most taxicabs are dirty with drivers who can't speak English and don't bathe, while ripping off the customer. Good riddance to taxis.

Sun, 09/06/2015 - 16:41 | 6516162 Inthemix96
Inthemix96's picture

Mind, take this in the context due.

NYC must be like the filthy, stinking hovel of a shit hole, full of child rapists that is London.  I have had the misfortune not once, but twice having to go there on business.  Must be just like that bastion of virtue on your end then?

I will never, as long as I have a hole in my arse go back to that scum hole, I hope you decide to do the same.

Full of cunts anyhow...

:-)

Sun, 09/06/2015 - 16:51 | 6516192 Ms No
Ms No's picture

Hah, may the road rise up to meet you and may you always have a hole in your arse ( :

Sun, 09/06/2015 - 17:11 | 6516247 MANvsMACHINE
MANvsMACHINE's picture

Can you drive an uber through his arse?

Mon, 09/07/2015 - 04:51 | 6517718 Kprime
Kprime's picture

it might be possible now that you don't have to drag the government medallion around behind you.

Sun, 09/06/2015 - 16:59 | 6516209 Duc888
Duc888's picture

hey I just paid $14 for a slice of pizza (no flavor, that costs more) and a beer in NYC.

Sun, 09/06/2015 - 17:13 | 6516239 ThroxxOfVron
ThroxxOfVron's picture

You shoulda asked/told someone like myself where in NYC you are/were going to.

NYC has awesome food at decent prices available in almost every part of the city: you just have to know where it is.

You could have had some of the best, freshest, most flavorful pizza in all the five boroughs -quite reasonably priced: just a block off Times Square.  The little place across from the Marriott Marquis, just east of the Scientology Bldg. has only three or four stools at the counter and serves damn good pie whole or by the slice! 

IF you want a wild foodie adventure hit me up and I'll take you to Astoria/Queens for the real Greek and Irish fare or over to Elmhurst/Queens where South America, Asia, and the Middle East immigrant cultures jostle and collide to provide a world-class gastronomic paradise...

Sun, 09/06/2015 - 21:52 | 6517138 Navymugsy
Navymugsy's picture

Elmhurst always had great South American food even back to the 70's. Gino's Pizza on Broadway was the shit however I heard he passed and it was sold to a Colombian family.

Sun, 09/06/2015 - 17:13 | 6516253 Skateboarder
Skateboarder's picture

The only time I been in NY, I stayed in my cuz's apartment across the street from Douchebank on Wall St. Had ~$100 to my name at the time - it was a trip to experience the order of magnitude difference of money floating around in person. Had to throw down $10 for a slice of real "NY cheesecake" though - giganto slice, worth every penny.

Sun, 09/06/2015 - 16:51 | 6516191 AlfredNeumann
AlfredNeumann's picture

Russian officials propose bill to grant every citizen one hectare of farm and forest land to use for self-sufficiency

Read more: WHAT REALLY HAPPENED | The History The US Government HOPES You Never Learn! http://whatreallyhappened.com/#ixzz3kzeiRFXt

>>>>>>>>>>>>>>>>>>>>

Meanwhile in the USA they are fining people who have solar and live off the ''grid''

They fine people for having gardens. and even harvesting rain water from their roofs.

Sun, 09/06/2015 - 16:52 | 6516193 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Give me a call when a new app restores a free market in issuance of money and destroys the NY banking cartel. 

Sun, 09/06/2015 - 16:59 | 6516216 Drain Bamage
Drain Bamage's picture

"Think of sectors like education, mail, courts, money, or municipal taxi"

 

OMG - automobile dealers.  the devil incarnate. 

Sun, 09/06/2015 - 17:07 | 6516236 ptoemmes
ptoemmes's picture

"Just think about how greatly our lives would improve if all the regulations that have been designed for no other reason than to protect established businesses against competition from upstarts were rescinded."

I suppose it makes sense that this is almost exclusively characterized as UBER v Taxis since those "cartels" stand to be hurt the most, but the vehicle for hire car service business has also been impacted.

While VFH permits are not as historically "valuable" as Taxi medallions, the regulations achieve similar - limit supply and also regulate a higher cost point than UBER or a free market might.

If my family business in Southeast Florida were not so negatively impacted it would be more amusing to watch Pal Beach, Broward, and Miami-Dade contort themselves to accommodate UBER while keeping the status quo for the rest of us.

Broward County staff does not feel that UBERs insurance game is legal in Florida so the commission wants to give them a six month period to get a ruling from the state. Meanwhile we carry standard 7x24 commercial auto and general liability insurance by regulation and that ain't cheap. We can't use anything not defined by the county as a luxury vehicle - so, for example, no Chevy Impalas,

Sun, 09/06/2015 - 18:23 | 6516472 PoasterToaster
PoasterToaster's picture

Wouldn't it be nice if you didn't have to buy all that "insurance" and conform to all the other extortions known as "laws"?

Why not just stop paying?

Sun, 09/06/2015 - 22:46 | 6517320 Christophe2
Christophe2's picture

"Why not just stop paying": For the same reason that most people do not stop paying taxes: because otherwise you end up with your assets seized and probable jail time.

The fellow above was trying to run a business in accordance to the way the crappy elites set it up, so that everything would be as expensive as possible for the customers, and with nearly all the money going to BS 'insurance' and other crap, hence why his business was barely profitable (BY DESIGN).

Personally I have a lot of empathy for people who end up shafted like that, and I appreciated that he wasn't asking for anything particular - just sharing his story and the impact these changes are having on his industry.

One thing to keep in mind though is that things change and few businesses can run for decades without interruption and no end in sight.  In fact, it's only the government monopolies that give the feeling of safety (by offering a 'politically correct' creeping change, always in favor of vested interests).

A lot of things are getting ever worse (ex: pollution), but some things seem to be getting far better (information and even awareness).  To the fellow above: don't give up, but also don't stay stuck on an old idea.  Don't try to beat a dead horse...

Sun, 09/06/2015 - 17:14 | 6516258 22winmag
22winmag's picture

When people start "voting from the rooftops" it will largely be the local permit nazis, city council/board of selectmen, zoning board, "health" inspectors, building inspectors, etc in the crosshairs!

Sun, 09/06/2015 - 17:17 | 6516265 who cares
who cares's picture

Fuck Uber! 

Sun, 09/06/2015 - 17:20 | 6516280 RyeWhiskey
RyeWhiskey's picture

Uber is bull&%*. It holds no patents on anything and invented nothing.

Only advantage? Non-stop lying and deception while breaking laws and evading taxes followed by everyone else.

Enron v2.0.

Sun, 09/06/2015 - 17:29 | 6516306 Ludwig Von
Ludwig Von's picture

Uber is also "Cronyism". But worse than the old cronyism. No point in this article.

Sun, 09/06/2015 - 17:53 | 6516360 Publicus_Reanimated
Publicus_Reanimated's picture

Add this to your list of market axioms:  The more your industry is regulated by the government, the more you are a partner of the government.

Sun, 09/06/2015 - 17:49 | 6516361 Seal
Seal's picture

I'd like to see the market break the cronyism of the US military which stirs up then loses war after war while forcing the taxpayer to foot the bills

Sun, 09/06/2015 - 18:05 | 6516408 nmewn
nmewn's picture

About damned time.

Finally some real capitalism, where riders voluntarily get to choose where, when and with who to spend their money for a ride, instead of being forced into one of the crony monopolies licensed by the state.

Next we're going to make selling loosie's on the street legal ;-)

Sun, 09/06/2015 - 18:09 | 6516420 Dre4dwolf
Dre4dwolf's picture

I avoid taxis like the plague.

-Expensive

-Slow

-Unsafe Non-English Speaking Drivers (where the fuck do these immigrants get the money to pay for the tag??? shits like 1,000,000 USD????) proly OBAMA grants or some shit.

-They piss me off WHEN I DRIVE so "fuck um" I wont give them business.

 

I hate yellow taxis.

 

 

Sun, 09/06/2015 - 19:47 | 6516723 Deathstar
Deathstar's picture

OMG THIS IS FUCKING AWESOME!!!!!!!!!!!!!!!

FUCKING THE KIKES AT THEIR OWN GAME.

LOLOLOLOLOLOL

FUCK THE KIKES AND THEIR USURY AND SCAMS!!!!!!!!!!!!!!!!!

Sun, 09/06/2015 - 20:21 | 6516845 vincenze
vincenze's picture

Why can't a New Yorker glue a Taxi label on his car and drive around collecting fares without any license?

Why would he need this Uber?

Sun, 09/06/2015 - 21:47 | 6517119 Navymugsy
Navymugsy's picture

I remember reading a story a couple of years back about an Ecuadorian immigrant who'd taken out a mortgage to buy his own medallion for $385,000. The medallions were peaking at the time of the story and appeared to be headed for $1,000,000. I don't think they got that high but I hope he dumped it for a profit before Uber came calling.

As a former New Yorker I pray for the death of the taxi monopoly, the TBTA and the MTA nightly. Looks like one of my prayers is being answered.

Mon, 09/07/2015 - 00:00 | 6517461 JoJoJo
JoJoJo's picture

Ouch, now thats deflation. A million dollar medallion soon worth 37.50

Mon, 09/07/2015 - 04:06 | 6517695 wildbad
wildbad's picture

Main Street Pedicabs fired the first shot in that war.  they win too!

Mon, 09/07/2015 - 04:07 | 6517697 wildbad
wildbad's picture

AIRBnB ist machine gunning the hotel monopolies in the same way.  Positive destruction.

Mon, 09/07/2015 - 08:16 | 6517832 The Ingenious G...
The Ingenious Gentleman's picture

I like this story.

Mon, 09/07/2015 - 12:28 | 6518623 AlfredNeumann
AlfredNeumann's picture

Everything is a racket and probably the biggest racket of all is the Defense Industy where companies bill the govt HUGE amounts for things lke screws and toilet seats

 

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