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How Uber destroyed the NYC cab market

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CNN's Jon Sarlin explains how Uber moved into the biggest market in the country and defeated the formidable yellow cab industry.
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alnot01 (6 hours ago)
Uber did not destroy the NYC cab market, it broke the yellow cab monopoly created by the medallion system. In 1937, NYC passed an ordinance requiring each cab to have a medallion. A set number of medallions were created, and cab owners could obtain them on a first come first served basis. No medallions have ever been created since, and the price of a medallion rose to about 250K. The rise of uber has reduced the value of existing medallions to something like 30-50K and falling, because no monopoly power accrues to medallion owners any more.
Pat S (11 hours ago)
Thank you Uber
volcano hi (20 hours ago)
NYC is an unconsttutional cesspool of morons. why not just ban uber like you morons did to standard gun magazines. Just please- whatever you do stay in NY and continue to inbreed.
SugarPill (1 day ago)
Please come and kill the Vancouver BC cab market! The cab drivers here are asshole shit drivers.
Alex Zabala (2 days ago)
This reminds me of the time when horse and buggies were being pushed out by the horseless cars...times are changing, technology changed the stupid outdated taxi system.
Robert Bennett (4 days ago)
First off they didnt destory it they made it better. Its called compentition. Cant compete then change your rates
AriVovp (4 days ago)
Why now?
wholeNwon (4 days ago)
I had just been discharged from a major Baltimore hospital following brain surgery. They called for a cab to take me to the Amtrak station. I waited outside and tried to hail numerous passing cabs. None would stop. Finally, after hours, one did stop and take me to the station. I asked the driver about my experience and he said none stopped or were dispatched because they wanted longer, more profitable fares. I have never used a cab since and hopefully never will. Before that, the most frightening event I can remember was a cab ride between the airport and downtown New Orleans. The foreign driver chatted about the weather while going at extremely high speeds, weaving in and out of traffic, not signalling, other drivers dodging him, horns blowing, etc. It was like a scene from Demolition Derby.
David S (5 days ago)
Fake news cnn. Free market, cabs sucked.
Timmy (5 days ago)
Taxi services suck but Uber should be regulated like a taxi. If it walks like a duck it’s a 🦆
Frederico Couto (5 days ago)
It's not the Uber that destroys cab, but cab services all over the world did not modernized.
samuel dimascola (6 days ago)
tip youre drivers because youre cheap ride is because Uber is exploiting the drivers..who are slave drivers..modern day sharecropper
Rob Tro (6 days ago)
Story in new York Post today about the number of New York cab drivers committing suicide. Horrific.
minuteman2012 (7 days ago)
I'm surprised ppls insurance will cover them..... using their private car for commercial purposes
foxhound6364 (7 days ago)
Uber just proves that more libertarian business with fewer regulations offer better service and better prices. Taxis in my town were forced to cut their ridiculous fares in half to compete when Uber came in. Taxi fares for a 10 minute ride here used to cost as much as renting a car for a day.
curandero verde (7 days ago)
I used to work 12 hour shifts for a taxi company (in michigan)...after paying the lease, filling the tank and cleaning...id sometimes take home less than $20...uber is more efficient for both the rider and driver....
Raj B (7 days ago)
it all comes down to customer service , customer service , customer service
Adhame Zitoune (7 days ago)
This happened in most countries
Ensign MJS (7 days ago)
I'm neither for nor against Uber. But Jon Sarlin is kind of cute.
eyestoenvy (7 days ago)
🙄🙏🏼 Uber ❤️
benocc12 (8 days ago)
the cabbies suck so they blame uber
Sean Bryant (8 days ago)
Cabs destroyed cabs. Uber just stepped in with something better
howtobebasic1 (8 days ago)
less crown vics cuz of uber :(
Artur Garncarz (8 days ago)
How much does a taxi driver earn that he can pay (loan or cash) for a medallion that is worth from 200 K to 1 000 K?!?!?!?!?
Zorbacci O (8 days ago)
The automobile disrupted the horsedrawn carriage market. CNN should cry about that too. Maybe we can go back to hunter-gatherers.
daniel russell (8 days ago)
Uber made the industry better. Technology is here to help us. I recently used this new app to find parking on the street, this made my life so much easier, just like an Uber does. Korki by People over profit LLChttps://itunes.apple.com/us/app/korki/id1280422784?mt=8 for those interested check it out. Technology is the future
Scott Taylor (9 days ago)
Uber and Lyft destroyed all cab companies I live here n Springfield Illinois local cab company hates the companies running them down.
Jackson Liekmann (9 days ago)
They need to make their own vehicle. Not an autonomous Volvo XC90..
ANDRE MARIANO (9 days ago)
Bob Smithies (9 days ago)
Good, yellow medallions are a cartel.
fuzzy mohawk (9 days ago)
Uber lobbied and wrote their own laws duh
William Claudius (9 days ago)
It’s called competition and it’s everywhere.
Stage B (9 days ago)
I call this business shift the "Kodak syndrome". Modernize with technology, be competitive, and keep up with trends or fall behind. As simple as that.
Randall Beck (9 days ago)
ride sharing did not just 'swoop in' and take over market share, UBER paid thousands of dollars in campaign contributions and lobbying efforts; have you ever met a lawyer who turned down money for service rendered..? The predatory practices of UBER have accomplished the near complete destruction of taxi service in my city, even as UBER charges now exceed the city taxi meter rate by almost double. fyi
Andromeda (9 days ago)
This is why Uber is being banned by many countries.
travz21 (9 days ago)
How Blockchain destroyed Uber. Coming up in a couple years.
Leon Carr (4 days ago)
Cabs destroyed themselves... Racist, Belligerent Smelly cab drivers vs. not any of those things Uber... The customers have chosen which one we prefer.
Jose A (10 days ago)
Good! Almost a $1,000,000 for a medallion? Someone's making that money and its not the taxi drivers.
Cheka Brown (10 days ago)
Nah, racism, refusal to serve neighborhoods of color and reluctance to stay competitive or adapt to new technology ruined NYC taxis.
Alex Robles (10 days ago)
good riddance! you reap what you sow!
Austin Tweedy (10 days ago)
Taxi services were terrible and the regulation was even worse
Zeon (10 days ago)
The free market provides
Samantha Monaghan (10 days ago)
Noooo, anything but a free market and competition.
HardWorkingProgressive (10 days ago)
Well done Uber.
Steve (10 days ago)
uber is cancer and its users ignorant and misguided and myopic
Steve (9 days ago)
i dont drive a taxi, you presumptuous dolt
Bob Smithies (9 days ago)
I do not want to get in your cab.
Arioch IV (10 days ago)
Uber offers a superior service at a lower price. It doesn't take an economist to figure out what that does to their competitors.
Nicholas Hartzler (10 days ago)
Those numbers cant be "fair" theres probably 3-6 uber drives with their own car/permint for each taxi cab that is split among drivers.
Michelle B (10 days ago)
I live in the Montreal, Quebec area. Uber is now here for a few years. They do not pay the taxi permit wich is a few houndreds of thousand dollars. Now just as NY's medallions, it is nearly worth nothing anymore. M'y grandpa was a taxi driver, my dad started life as a taxi driver. This to me Is simply unfair that taxi owners owe their shirts on their back and that these individuals just puts the money in their pockets. This is not their fault, nor Uber, but the gvnt to simply look at it go by and do nothing. They could either refund the medallions or make it that Uber has to do the same. I never call Uber. I either take the bus or call a regular cab. The gvnt here don't do anything either. A lot of these drivers are immigrants that can't get a job. Money and Power rules the world. This is a great exemple,
Tom H. (8 days ago)
Michelle, I totally agree. A professional taxi driver in a Minivan is a much better choice than some random guy who shows up with a tiny car that can't transport your luggage. And you hardly ever hear of criminals driving taxis, whereas lots of Uber/Lyft drivers are shady.
Mike W. (10 days ago)
Luis Florez (10 days ago)
Easy. Put all yellow cabs in uber. Paint then black, thoug.
Joaquin Ventura (10 days ago)
Yellow cab companies destroyed themselves by ignoring other parts of N.Y....I waved a cab 1 day he asked me where I was going ...Staten Island he said no only Manhattan...he can work in staten island wtf...Uber life saver
Space channel 7 (10 days ago)
mak ram (10 days ago)
good... cabs have been ripping people off for years
Doc Undies (10 days ago)
1 throw away line about - the biggest factor in WHY taxis exist in the first place. Paying customers & their need to travel from A to B. 3:20 seconds of moaning about profits being lost yada yda - Focus on what people are paying for & what they need and the damn profits will follow. Corporations think they exist solely to make profit and most of us let them get away with it.
RiwenX (10 days ago)
Uber is definitely not everywhere. I mean, it's banned almost everywhere in Europe. Don't get me wrong, I'm a pro-free market guy, but Uber is a shady company.
BigBollocks (10 days ago)
Investing in a taxi medallion is not the basic purpose of a taxi. Any city that does similar - like HK - is ridiculous.
The Vape Critic (10 days ago)
Goober is only affordable because everyone who drives for them ends up working for minimum wage, or less, when all costs are considered. It’s a giant scam masquerading as convenience 🙄
Alex Zabala (2 days ago)
The Vape Critic nah, if they dont like driving for uber, then all they have to do is quit.
Robert Bennett (4 days ago)
The Vape Critic last week i made an equivalent of 17 dollars an hour so more than minimum wage where i am
benocc12 (8 days ago)
I average 15 hour in my market. drive smart not hard.
Adrian Burke (10 days ago)
The Vape Critic most people don’t do Uber as a main job, but instead do it for extra cash on the side.
Quan Tran (10 days ago)
This sound very similar to when USPS say email killed their business when during that time USPS could have adopted email.
retnavybrat (4 days ago)
Why would I pay anyone else for a service (e-mail) I get for free now?
prochem100 (10 days ago)
cabs cost too much ,too late. uber ,dollar value, 10-15 minutes wait . really ,uber destroyed the industry. COMPLACINCY did.
Torsten Hranchuk (10 days ago)
GOOD cab driver's here in vancouver aer terrible driver's they block streets park in no stopping zones etc YES DOWN WITH TAXI"S bye bye i would rather walk then have very bad taxi driver's !
LISA SMITA (10 days ago)
I'm so glad they're feeling it in their pockets. Don;t be shock!! In 2018, yellow bellies still refuse to stop ✋ for some people. Recently witness several cabs passing people who was waving in the wind for a ride. Both times, I was on my way home. I joined them in helped hailing a cab. THANK GOD for uber, lyft and private 🚗 services. I travel door to door by car. 🖕the yellow 🚖 industry.
Arjun Chatterjee (10 days ago)
Thanks Uber!
Kyle Shwartz (10 days ago)
Fuck taxis and fuck taxi drivers 🖕🏼🖕🏼🖕🏼
Chris W (10 days ago)
Just a suggestion - turn the wholly unecessary background music down or preferably off and then we can hear you speak more clearly.
Michael (10 days ago)
I do not get the excitement about Uber/Lyft. Cities are stuffed with cars, congestion has become a major problem. Researchers advice cities to imply transportation-fees to Uber/Lyft. They can be as high as a medaillion nowadays. 50% of Uber-Drivers quit within a year and on avarage work way below minimum wage. After building up a monopoly and taking away subsidy prices will rise and due to a lack of competition can be as high as Uber wants. Yes, yellow cabs have missed the point where they should improve in customer service and digitalisation. But please do not be shortsighted - we are buiilding a monopoly and will regret putting local transportation in the hands of one player. And yes, of course everyone knows an Uber-driver that makes 100k...really? That would be a shitload of rich Drivers wandering around the streets. We tend to bookmark these exceptions. Research and reality differs from that.
Bobby Paluga (10 days ago)
You mean there is an alternative to a Russian or a Pakistani driving you in a filthy cab reeking of stale smoke, and having no idea how to get to your destination; how awful What a big surprise that New Yorkers are ambivalence about cabbies having it tough, call it payback. Uber now take care of those awful Vegas cabs
NinjaPcMaster (10 days ago)
uber is garbage making you an slave.
TyrantTitan (10 days ago)
...and it's a good thing.
Scot Inman (10 days ago)
Screw the yellow cab. They will never go outside of Manhattan so I have no pity for them
Jeffrey Cornish (10 days ago)
Yes but just wait a couple of years and Uber and lyft will be the same as the yellow cab after the drivers find out what they have to deal with and the dangerous profession they have chose I guarantee they won’t do it anymore at best because they won’t want to use their own vehicle to transport some unknown strangers only to be knifed shot in the back kidnapped raped or killed because it seems to me the majority of the people of this world are horrible horrible
Lando Parada (10 days ago)
I don't care about the taxi industry, as long as I'm not ripped off for a ride I'm fine. And obviously, the cost of regulation for the cabs, they were being passed onto you, so look!!! No more scamming from the local government or some dude driving you around.
Vegas X (10 days ago)
Fuck the rag head taxi cab industry. Uber FTW!
Noemi Yesfir (10 days ago)
For decades big money and big government has squeezed the public by running the giant scam known as the medallion system. I shed no tears for the corporations who are finally facing (and losing) real marketplace competition. As for the "independents" who are also getting hit, 99% of them knew the system was corrupt, yet they chose to buy into it. Too bad.
Phil Meup (10 days ago)
Yellow cab hired a bunch of foreign bums to drive cabs.   They fucked themselves.
Hellisan12 (10 days ago)
I am generally quite conservative but amazingly this is not fake news. The only problem is it's half a decade too late. Also another split from "conservatism" I will say is this: If the majority of cab drivers were white, this never would have happened. It's absolutely criminal what cities have allowed Uber to get away with in the name of of progressivism. AS in: you're gonna do the same exact thing as the taxis, except skirt radio laws with an app, not having to get your cars checked up and have calibrated meters and laws about who is driving the cars or what types of insurance they carry? FUCK YEAH GO FOR IT!
gee10000 (10 days ago)
It's simple why cities are coming around to these ride-sharing services. Uber/Lyft/Via has done WAY more to boost the value of real estate in major cities than the cab industry BY FAR. Higher RE value = more $$$$ in taxes. Parts of cities formerly underserved by public transit or otherwise considered undesirable now can be easily reached fast and has even become price competitive with traditional mass transit, making those areas more desirable to live. Coupled with the prospect of privately owned self-driving cars, traditional cabs will soon be extinct.
Leonel Ventura (10 days ago)
I agree with all the benefits of having Uber around (and Lyft) but as a former Lyft driver, I can tell you, you make more money NOT driving, keep your car at home, you'll make more money. I'm assuming for Uber drivers it's the same. I made so little vs. my mileage (deducted as an expense) that I had a business loss on my income taxes for 2 years (on IRS schedule C) LOL which means that the Federal Government (IRS) probably collects next to nothing on Uber/Lyft drivers income. All the money goes to Uber/Lyft corporate commissions, a whopping 25%, on top of all the other gimmicks they play like only paying you for one fare even though you take 2 fares at the same time (Lyft Line & Uber Pool). I would never drive for Lyft again, unless they chop their commission down to around 5% which is what it should be.
HellBoy (10 days ago)
CNN no HD???....what the heck!
Stacy Egg (10 days ago)
This is so dumb lol cabs just suck and uber is better. If cabs wanna survive they jus need to uhhhhhh get better lol
NonyaBusiness! (10 days ago)
I don't know what the solution is. I do know this much. When it's 7 degrees outside and I just stepped out of a bar and my friends have left and I want a ride to the train station, I don't want to have to beg like a dog, hoping a yellow cab will pick me up. Sorry, as a black man, Uber and Lyft are like manna from heaven! 1. I don't have to stick my hand out like a hitch hicker 2. I know when my ride will get there 3. My driver knows where I'll be 4. I know who's going to pick me up 5. I don't have to beg cabs who are all of a sudden "off duty" when they see me to make an exception and drive me 6. I don't have to reach for my wallet. Heck, even the question of a tip is taken care of! I still remember my dad trying to get a rid for us and a cab driver looking at us then deciding, yeah, I'm off duty right now. It was cold, snowy, and the middle of winter, so my father carried one of us in each of his arms all the way home, about a ten minute walk. I also remember a cab literally driving right past me to pick up a blonde, white lady. Literally he just drove past me like my hand wasn't out. Sorry, I have zero sympathy for these guys. ZERO!!! When I leave the bar now, I don't even look at a yellow cab. I couldn't care less how empty they are, whether their lights are on, not on. FUCK YOU! Competition is the greatest thing in the world. I was in San Francisco for my job a few years back and had to catch a plane out of there around 3am. It was my first time there and I was going to take the train, but then decided, why am I fucking around in the wee hours of the morning? I took out my phone and contacted Uber. Three minutes later, I was heading to the airport. Sorry, cabbies, you should have treated us better, but you thought you could treat minorities like trash.
Mike K (10 days ago)
If you’ve taken cabs as i use to, it was terrible. Smelly cabs, rude drivers and waiting for them to pick you up as long as i did. Uber just did it better granted they’ve made lots of mistakes towards riders and drivers it’s just a better option.
Tyler Johnson (10 days ago)
Progress doesn’t care who gets left behind. Imagine if Blockbuster or Hollywood video pulled this shit with Netflix. “How Netflix killed the video rental industry” it’s just as ridiculous as this.
Great! Fuck their $1 million medallions and their stranglehold on businesses. Total assholes
Lassiter Bonano (10 days ago)
the reason they destroyed yellowcab? cause it was there to destroy.
Marvin Brando (10 days ago)
The Government destroyed the taxi industry
Benki (11 days ago)
What goes around comes around cabs.
thesnare100 (11 days ago)
Good, cabs suck, they take the longest routes to maximize profit, are rude to you, good riddance. The Crybabies want to the government to silence/stifle their competition rather than giving good service!
Rimbuk (11 days ago)
Uber and Lyft are disgusting companies. Uber isn't even making money, their prices are too low. They're just busting yellow cabs till they go bankrupt, and their families starve. I'm all for competition, but these ride sharing services legit have NO REGULATION as compared to cabbies. These apps need to be regulated, and I'll be happy with the competition. Medallion prices have gone to crap cause you don't need them anymore. Y'all get mad because you have to pay cabbies a living wage, cheap-ass Americans.
Daniel Perez (11 days ago)
fuck the cab market fckn racist assholes
Pars S (11 days ago)
How likely is it for a racist, rapist, pedophile, criminal, human trafficker etc to be your personal driver. With an old-school establishment, the owners or the garage wouldn't risk their medallions on some deranged idiot. Also, I know most you who have your nose stuck into your phone are clueless to the obvious, but wonder why there are massive congestions everywhere?? Think you're savming a few bucks (vs regular taxi) but the trip is now signifcanlty longer and costing more and more... With no regulations or control, the amount of livery vehicle on the road has increased massively, your route is now bumper to bumper Uber cars. 6 Uber for every one taxi... It hasn't happened yet, but with the phone in hand and oblivious to your surroundings, it's displaying your stupidity for all. Not a good look. btw, The rest of you fake new drones on this threat can eat it.
Mr_RGP (11 days ago)
I hope some company commits themselves to killing the MTA.
A Martin (11 days ago)
New York state should be ashamed of themselves. They advertise themselves as being a place to grow your business, but do nothing to protect the businesses they have. If they are not going to make Uber follow by the laws that yellow cabs have to follow, then why should we have laws for yellow cabs?
BobbyG (10 days ago)
A Martin Cabs have been ripping us off for decades...there is literally nothing to protect... If you want to ride in a filthy cab with a ride ignorant wanker...go ahead....it'll cost you twice as much...but nothing is stopping you from supporting a practice that should have ended long ago...by the way... Bring cash if you want to actually get to your destination... Oh you're probably one of those "tip you in the app" lying motherfuckers aren't ya?
beathan99 (11 days ago)
Uber isnt everywhere, Denmark shut that crap down for good. Having a halfway descent cap system, I´m glad those tax evading fuckers got theyre asses handed to em. Uber never really got big in Denmark, I guess because we actually have working unions and atleast some non corrupt politicians, turned out 99% of uber drivers never payed taxes, so fuck uber.
Richard Upyurass (11 days ago)
the only thing that ruined cabs in NYC is cabs in NYC. Nasty cars, stinky drivers, non english speaking drivers, rude drivers and bad service.
MrDagr8rylz (11 days ago)
as a New Yorker, Yellow cabs will not be missed, they are racist, rude, dirty, overpriced, sayonara, I feel bad for the medallion owners who have committed suicide., but Uber and Lyft over them Yellow cabs any day. my only issue with uber disrupting the industry like this is that there is really nothing offsetting the decline of yellow cabs, uber and Lyft drivers unfortunately don't make a lot of money, there have been times I've gone quite a distance for under $2 and im thinking in my head that there is no way the driver is making a profit off of this ride. with yellow cabs those guys back in the days were making like $4,000 a week, Uber/lyft drivers are not making anywhere near a fraction of that. you can't kill one industry, and replace it with one that isn't going to last long, Uber will have to start restricting entry for drivers so their current drivers can actually start turning a profit other wise what would be the point of driving.
Kyle D (11 days ago)
You mean how the free market killed an industry filled with crony capitalism. Uber and Lyft are great examples of the free market and how consumers are smart to choose a better choice.
Nathan Smell (11 days ago)
welcome to america
Travis Ryno (11 days ago)
There is no such thing as underregulation in a one man operation like ride sharing. Thats just you trying to be diplomatic, and you don't need to be. If Uber wages were too low, few ppl would do it. If you want to boost their wages, then tax them less. ...and what about the money that everybody saves from RIDING Uber? Theres way more riders than drivers.
Liberty Never Sleeps (11 days ago)
you say this like it was a bad thing..
alextheromanian (11 days ago)
i live in NYS and visit the city quite a bit. i appreciate yellow cabs for being a reliable known entity versus the god knows what you get back in romania whenever i visit family every now and then. having the citys seal of approval ensures you wont get ripped off and that whatever yellow cab you take more or less is the same price as any other yellow cab. but its a monopoly...and dont ask me to feel bad for a monopoly's downfall. the medallion price is not a result of uber, it was a bubble that popped, look at the graph again...and tell me it doesnt look like a classic bubble graph. lets look at it this way. more people are employed now through uber lyft and cabs than there ever were with cabs alone. secondly if yellow cabs were so awesome, there would have been no place in the market for third party stuff. the fact alone that you couldnt call a yellow cab across the river in jersey to take you to a bar in the city was just reason enough to invite uber. this sort of disruption is the same as the AIR B&B scandal in NYC. hotels are upset they get less business...last time i got a hotel room in the city it cost me 281 dollars a night and the bathroom was moldy. free market settles all these problems...i as a consumer am happy i have options in this day and age.

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