The yellow-cab economics

Are New York Taxis Such a Bad Investment?

I recently attended a private-equity conference where a speaker, a TV pundit, abruptly shifted from offering tidbits from the Trumposphere to random life advice: “You have to ask yourself whether you want to be Uber or one of those dying yellow-taxi companies?” Even with bad news dripping daily from Uber, everyone in the audience knew the right answer. Who would choose death? Just a few days earlier, I had a long conversation with the owner of a New York City yellow-taxi fleet about the economics of his business. I called him after learning about the stunningly low price that someone had paid to buy a medallion to operate a yellow cab in the city: two hundred thousand dollars. ….[READ]