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Chicago taxi industry sliding towards collapse

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Re: Chicago taxi industry sliding towards collapse

#11

Post by ThrustVectoring »

greglindahl wrote: post #8
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.

Good riddance. Taxi medallions are a market in rent-seeking, investing in it should mean you lose your shirt.

Re: Chicago taxi industry sliding towards collapse

#12

Post by sharemywin »

tstactplsignore wrote: post #9
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 en…

As much as I'd like to agree with you, calling it "fringe" might unfortunately underestimate the number of people that support.

Re: Chicago taxi industry sliding towards collapse

#13

Post by shapov »

alkonaut wrote: post #5

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).

  I don't use Uber over taxis simply because I can get the exact same service from a taxi
That's just not true.

Just off the top of my head:

* 3-4 clicks and I have an Uber on its way vs. Having to talk to a dispatcher. Time saved.

* I know ahead of time how much the fair will be vs. at the end of the ride.

* I simply get out of the car once I reach my destination. I don't have to deal with paying, calculating tip, etc...

* Uber cars tend to be newer and in much better condition.

Now, I am not advocating for Uber, but lets not kid ourselves that the two experiences are even comparable from the customer's point of view.

Re: Chicago taxi industry sliding towards collapse

#14

Post by kasey_junk »

alkonaut wrote: post #5

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).

They have much higher legislative hurdles to overcome?

Re: Chicago taxi industry sliding towards collapse

#15

Post by ThrustVectoring »

alkonaut wrote: post #5

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).

Taxi medallions were being sold for $300k three years ago. Taxis likely didn't buy with cash, but rather financed them, leading to significantly higher operational expenses.

Re: Chicago taxi industry sliding towards collapse

#16

Post by joejerryronnie »

It appears the basic reason for a taxi medallion system is to regulate the industry and control supply to prevent a flood of random drivers being unleashed on an unsuspecting populous.

Uber/Lyft business model: Unleash a flood of random drivers on an unsuspecting populous.

Not that I agree with the taxi medallion system as it's ultimately been used to grant political favors and prop up unnatural monopolies but it is interesting how the negative consequences supporting the argument for why the taxi industry should be regulated are actually the competitive advantages of the ride hailing companies. . . well, that and unfettered access to VC subsidized fares, but who's counting?

Re: Chicago taxi industry sliding towards collapse

#18

Post by ThrustVectoring »

sharemywin wrote: post #17

As much as I think the taxi system needed replaced, I'm not sure how I feel about companies breaking laws to innovate. If we go down that path are the south american drug cartels just ahead of their time.

It really depends on the law. "You need to pay $300k for the right to get paid to drive people from point A to B" is a really terrible law.

Re: Chicago taxi industry sliding towards collapse

#19

Post by alkonaut »

shapov wrote: post #13
alkonaut wrote: post #5

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).

I don't use Uber over taxis simply because I can get the exact same service from a taxi That's just not true. Just off the top of my head: * 3-4 clicks and I have an Uber on its way vs. Having to talk to a dispatcher. Time saved. * I know ahead of time how much the fair will be vs. at the end of the ride. * I simply get out of the car once I reach my destination. I don't have to deal with paying, calculating tip, etc…

I'm talking about where I get a cab where there is app dispatch+ (pre) payment. And no medallions.

Obviously taxi companies that still operate like it's 1990 are going to go extinct - my question was why are they operating like it's 1990?

Re: Chicago taxi industry sliding towards collapse

#20

Post by philipkglass »

joejerryronnie wrote: post #16

It appears the basic reason for a taxi medallion system is to regulate the industry and control supply to prevent a flood of random drivers being unleashed on an unsuspecting populous. Uber/Lyft business model: Unleash a flood of random drivers on an unsuspecting populous. Not that I agree with the taxi medallion system as it's ultimately been used to grant political favors and prop up unnatural monopolies but it is…

It appears the basic reason for a taxi medallion system is to regulate the industry and control supply to prevent a flood of random drivers being unleashed on an unsuspecting populous.

I'm fine with regulations to enforce safety. I'm not fine with the "control supply" aspect. Medallions shouldn't be rationed any more than driver's licenses in general; just require people to pass standard tests and documentation requirements to get a medallion. It's unfortunate that medallion systems seem to fuse a justification that clearly serves the public interest with one that serves the public to a much lesser degree, or even not at all.

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