Chicago taxi industry sliding towards collapse

#1

Post by lxm » Fri, Jun 09, 2017, 6:15 PM UTC

Chicago taxi industry sliding towards collapse
usatoday.com

Re: Chicago taxi industry sliding towards collapse

#2

Post by hammock » Fri, Jun 09, 2017, 7:55 PM UTC

I have heard this from several taxi drivers. As a passenger cabs have all but disappeared from the streets compared to a few years ago

Re: Chicago taxi industry sliding towards collapse

#3

Post by basseq » Fri, Jun 09, 2017, 8:02 PM UTC

I'm left wondering... so what?

The "personal transportation" market has massively changed. Whether it's for the better or worse simply doesn't matter.

  Veteran Chicago cabbie John Aikins,67, who is facing 
  foreclosure on two medallions for which he owes more than 
  $330,0000, said he has little hope that the industry can 
  be saved.

  "It feels like the city is just watching us collapse," 
  Aikins said. "Right now, there are a few people, the 
  elderly and some others who refuse to take Uber because 
  they are uncomfortable with it, that keep us going. But 
  how many of those people are out there to sustain us?"

Chicago, by way of example, does not "owe" the cab industry anything. And, in fact, likely needs to make their own changes to manage the quickly-depreciating medallion model. The government in no way insured that medallions would be a winning business investment. And, harshly, those defaults (on the secondary market, no less) likely won't have much economic impact.

I'm firmly behind Judge Richard Posner: "Were the old deemed to have a constitutional right to preclude the entry of the new into the markets of the old, economic progress might grind to a halt."

Re: Chicago taxi industry sliding towards collapse

#4

Post by basseq » Fri, Jun 09, 2017, 8:05 PM UTC

basseq wrote: post #3

I'm left wondering... so what? The "personal transportation" market has massively changed. Whether it's for the better or worse simply doesn't matter . Veteran Chicago cabbie John Aikins,67, who is facing foreclosure on two medallions for which he owes more than $330,0000, said he has little hope that the industry can be saved. "It feels like the city is just watching us collapse," Aikins said. "Right now, there are…

Second thought:

The medallions give "the exclusive right to pick up passengers who hail them on the street". But that's just happening as much. But even "the elderly" are likely not going outside (in Chicago) and sticking their hand out. They're being dispatched, where you wouldn't need a medallion in the first place (right?).

Re: Chicago taxi industry sliding towards collapse

#5

Post by alkonaut » Fri, Jun 09, 2017, 8:07 PM UTC

How are they making so much less money than Uber? Simply by paying drivers more?

Because if they don't have things like booking, pre-paying via apps etc then of course they are losing business - but in that case why don't they?

I don't use Uber over taxis simply because I can get the exact same service from a taxi, but the drivers are better off in terms of pay and schedule (as far as I know).

Re: Chicago taxi industry sliding towards collapse

#6

Post by TY » Fri, Jun 09, 2017, 8:08 PM UTC

Anectodal evidence from my trip to Chicago last week. The same trip cost me twice as much when I took a taxi vs Lyft. So guess what I'm going to take the next time...

Re: Chicago taxi industry sliding towards collapse

#7

Post by degenerate » Fri, Jun 09, 2017, 8:09 PM UTC

Good, it's about time we let some crappy things die.

Bailing out the banks and GM got me furious many years ago. Imagine if the government stepped in and saved Altavisa / Pets.com, and all the other dot-com boom companies? What good would that have done? Nothing. Let 'em burn and innovation will rise from the ashes.

Re: Chicago taxi industry sliding towards collapse

#8

Post by greglindahl » Fri, Jun 09, 2017, 8:10 PM UTC

basseq wrote: post #3

I'm left wondering... so what? The "personal transportation" market has massively changed. Whether it's for the better or worse simply doesn't matter . Veteran Chicago cabbie John Aikins,67, who is facing foreclosure on two medallions for which he owes more than $330,0000, said he has little hope that the industry can be saved. "It feels like the city is just watching us collapse," Aikins said. "Right now, there are…

Google [bank taxi medallion exposure] and you'll discover a few banks that are going to go under. Not a significant problem in the big picture, but it is still a problem for more than just medallion owners.

Re: Chicago taxi industry sliding towards collapse

#9

Post by tstactplsignore » Fri, Jun 09, 2017, 8:10 PM UTC

basseq wrote: post #3

I'm left wondering... so what? The "personal transportation" market has massively changed. Whether it's for the better or worse simply doesn't matter . Veteran Chicago cabbie John Aikins,67, who is facing foreclosure on two medallions for which he owes more than $330,0000, said he has little hope that the industry can be saved. "It feels like the city is just watching us collapse," Aikins said. "Right now, there are…

>Whether it's for the better or worse simply doesn't matter

Yikes- I have only a little sympathy for the taxi industry, but it is very scary that you do not believe we should be concerned with whether market forces improve society or not. I think it is extremely important to the vast majority of people that any enormous change in transportation occurs for the benefit of society - the ideology that capitalism is an end into itself is extreme and fringe, and we shouldn't be afraid to call it out as such.

Re: Chicago taxi industry sliding towards collapse

#10

Post by jostmey » Fri, Jun 09, 2017, 8:19 PM UTC

I used to live in Chicago. The city taxi service was horrible--the drivers were grumpy and sketchy. They would always try to take the expensive way around. I hated the taxi service so much that to get around the airport restrictions I would ride the train out to the first stop so I could order an Uber ride.