HomeUploadUpload DirectHotlinkRandomAbouttheme toggle
Expand

Uber and the Great Taxicab Collapse

Views:958
@ReasonVids

When Andrew Murstein hired pop music super star Nicki Minaj to headline his son Matt’s Bar Mitzvah, it was an unusually conspicuous flaunting of wealth by one of New York City's leading taxi cab magnates. Newsweek estimates that Minaj might have been paid as much as half a million for the gig, which entailed taking a personal photo with every single boy and girl in attendance.

Andrew Murstein’s vast wealth derives from a shrewd decision that his grandpa Leon made 78 years ago. In 1937, New York City issued what ultimately amounted to 13,437 taxi medallions—a special kind of license that conferred the exclusive right to drive a cab in the Big Apple. And Leon Murstein bought one...for $10. And then he bought several hundred more to rent to other drivers.

From 1937 to 2013, the price of each of those medallions climbed from $10 to over a million dollars. Over the years, the city tried periodically to break the medallion cartel to make life easier on the riding public, but to no avail.

"Ultimately all that value that’s built up in the medallions comes from passengers,” says Josh Barro, a reporter with The New York Times, who covers the taxi industry. “Fares are higher than they otherwise would be able to be because you have to limit the number of people using these taxis."

And then in May of 2011, Uber began operating in New York City. For the next roughly two and a half years, the taxi industry kept thriving. In November 2013, Medallion Financial, the publicly traded company that’s run by Andrew Murstein, saw its share price hit a thirteen-year high. But as more and more Uber cars took to the streets over the next year and a half, the stock plummeted, ultimately losing about half of its value.

The average number of trips taken in a cab each day has fallen and average farebox revenue has fallen. Taxi garages are jammed with parked cabs because they can’t find enough drivers to hire. They’d all rather go work for Uber.

“It really is remarkable how these monopolies that couldn’t be broken for decades were broken so quickly,” says Barro, "but I think it’s because of Uber moving first and saying, ‘we’re going show people how this thing can be different, and then we’ll have the fight over whether we want that different thing or not.'"

Go to http://reason.com/reasontv for complete text and links.

7 minutes and 43 seconds.

Shot, edited, written, and narrated by Jim Epstein.

Music: "Lacera per calla" by Sergio (Creative Commons); "Bronco Romp" by Waylon Thornton (Creative Commons).

Go to http://Reason.com/ReasonTV for downloadable versions and subscribe to Reason TV's YouTube Channel to get automatic updates when new material goes live.

uber (venture funded company)
,
taxi (transit vehicle type)
,
new york city
,
medalion
,
gene freidman
,
andrew murstein
,
nicki minaj (celebrity)
,
reason (magazine)
,
libertarianism (political ideology)
,
free minds
    Thumbnail for Gov't Tried to Shut Down Rap in Straight Outta Compton, and They're Still Doing It.3:45
    Gov't Tried to Shut Down Rap in Straight Outta Compton, and They're Still Doing It.
    ReasonVids
    878 views
    Thumbnail for Battle for the Supreme Court: Judicial Activism vs. Restraint21:58
    Battle for the Supreme Court: Judicial Activism vs. Restraint
    ReasonVids
    957 views
    Thumbnail for Family Farmers Fight Michigan Township For Their Animals5:39
    Family Farmers Fight Michigan Township For Their Animals
    ReasonVids
    1007 views
    Thumbnail for "Go Topless Day": What We Saw at the 5th Annual Protest2:35
    "Go Topless Day": What We Saw at the 5th Annual Protest
    ReasonVids
    850 views
    Thumbnail for Voat memes 6/11/2021 [slideshow]2:00
    Voat memes 6/11/2021 [slideshow]
    bestofvoatxyz
    1631 views
    Thumbnail for 'Twas the Night Raid Before Christmas2:31
    'Twas the Night Raid Before Christmas
    ReasonVids
    923 views
    Thumbnail for Great Moments in Unintended Consequences (Vol. 8)2:33
    Great Moments in Unintended Consequences (Vol. 8)
    ReasonVids
    950 views
    Thumbnail for Heart-wrenching video of a worker in Shanghai, who stops a truck to expose his desperation and hunger. Man breaks down crying when given bananas and crackers1:47
    Heart-wrenching video of a worker in Shanghai, who stops a truck to expose his desperation and hunger. Man breaks down crying when given bananas and crackers
    bestofsaidit
    984 views
    Thumbnail for Stupid Cops Arrest FBI Agent | Police Force 2.010:06
    Stupid Cops Arrest FBI Agent | Police Force 2.0
    invidious
    455 views
    Thumbnail for Let's check in on @graydragon's attempt to get sober 0:11
    Let's check in on @graydragon's attempt to get sober
    bestofupgoat
    456 views
    Thumbnail for FBI Surveils Bikini Baristas, Officer Busted in Sex Sting! Don't Cops Have Better Things to Do!1:57
    FBI Surveils Bikini Baristas, Officer Busted in Sex Sting! Don't Cops Have Better Things to Do!
    ReasonVids
    994 views
    Thumbnail for Keynes vs. Hayek Rap Video, Round 2: Q&A with Russ Roberts on top-down and bottom-up economics6:54
    Keynes vs. Hayek Rap Video, Round 2: Q&A with Russ Roberts on top-down and bottom-up economics
    ReasonVids
    882 views
    Thumbnail for Cuba’s Underground Surfers Chase Freedom in New Film "Havana Libre"7:06
    Cuba’s Underground Surfers Chase Freedom in New Film "Havana Libre"
    ReasonVids
    972 views
    Thumbnail for Jungle Junction22:18
    Jungle Junction
    somepkmn-lovingdude
    278 views
    Thumbnail for I Do This to Save Lives | Live From The Lair27:53
    I Do This to Save Lives | Live From The Lair
    Terrence Popp
    742 views
    Thumbnail for Are Republicans Having a Latino Moment?10:53
    Are Republicans Having a Latino Moment?
    ReasonVids
    968 views
    Thumbnail for The Rise and Fall of Backpage38:34
    The Rise and Fall of Backpage
    ReasonVids
    1018 views
    Thumbnail for Taking Politics Out of Transportation: Economist Bruce Benson on Private Roads6:33
    Taking Politics Out of Transportation: Economist Bruce Benson on Private Roads
    ReasonVids
    953 views
    Thumbnail for Gary Oldman's New Commercial [Post-Scandal Remix]0:31
    Gary Oldman's New Commercial [Post-Scandal Remix]
    ReasonVids
    920 views
    Thumbnail for Brian Doherty on Why Young People Love Ron Paul3:17
    Brian Doherty on Why Young People Love Ron Paul
    ReasonVids
    852 views
    Thumbnail for N.C. Doctor Sues to Break Up State-enforced Medical Monopoly2:28
    N.C. Doctor Sues to Break Up State-enforced Medical Monopoly
    IJvids
    1293 views
    Thumbnail for Halo Infinite - Team Slayer - Streets (XBOX SERIES X) | Mystical Gaming6:09
    Halo Infinite - Team Slayer - Streets (XBOX SERIES X) | Mystical Gaming
    invidious
    322 views
    Thumbnail for 🔴Madden 25 Gauntlet! | Mayz7:42:10
    🔴Madden 25 Gauntlet! | Mayz
    invidious
    155 views
    Thumbnail for That one Homie who is “quitting for good” 30 seconds into you taking his vape | FunnyMemeSpot0:13
    That one Homie who is “quitting for good” 30 seconds into you taking his vape | FunnyMemeSpot
    invidious
    159 views
    Thumbnail for In Defense of Roe3:58
    In Defense of Roe
    ReasonVids
    896 views

points

Permalink
Reply
uber (venture funded company)
,
taxi (transit vehicle type)
,
new york city
,
medalion
,
gene freidman
,
andrew murstein
,
nicki minaj (celebrity)
,
reason (magazine)
,
libertarianism (political ideology)
,
free minds
TOS  •  Add Keywords  •  Donate  •   Analytics  •   DMCA  •   Puzzle