Earlier quoted context omitted.
No they don't. Taxi drivers are exploited end-to-end. There's a reason why the medallions eclipsed a million dollars in price. The drivers have to lease their cars on a daily basis, and start at around $160 leasing fee in the hole. They're driving for many hours before they start making any money at all. That's not "power and control", that's getting totally screwed. And every Uber or Lyft driver who has ever driven…
I don't know about other major cities in California, but in San Francisco, taxi medallions were free until Gavin Newsom decided to "monetize" them in 2010. After that the city sold them for $250,000 each while providing low interest loans (via a local credit union) so drivers could pay for them. When Uber and Lyft arrived, their drivers didn't need medallions and there were no limits on how many drivers either compan…
That's better than most predatory lending around these medallions in other cities.
>The medallion system collapsed and those who took out loans for them did indeed end up getting screwed.
Unless there was some wording in the medallion law that would prohibit competitors from entering the market or set a buy-back value, I don't think anyone was screwed. Risky assets imply... Risks!