NEW YORK—Mayor Michael Bloomberg and Gov. Andrew Cuomo are both behind a plan to sell medallions to livery cab drivers. Each yellow cab literally has a medallion stuck on its hood, which acts as its license to operate as a yellow taxi in the city. Livery cab drivers are not currently required to have a medallion.
The number of yellow cab medallions is limited, which gives them a fluctuating price based on demand. Currently, they are at an all-time high. The average price of corporate medallions hit approximately $950,000 in September, with individual medallions reaching $650,000.
“[This] tells you how lucrative it is to own a cab,” said Bloomberg in his Friday radio show with John Gambling on WOR710.
Livery cabs, also known as black cabs, do not make as much money, so the medallion price would be lower, but the mayor still estimates the city could rake in about $1 billion. Most yellow cabs operate below 96th Street in Manhattan, so the livery cabs cover the rest of the city, said Bloomberg. Livery cabs are not supposed to respond to hails, only to calls.
Medallions come with many regulations meant to protect the public. Cabs with medallions are required to take credit and debit cards, collect certain data the city uses to improve service, install information screens in the back seat, and maintain contact with the Taxi and Limousine Commission via text messaging. This communication makes it easier to track down items that passengers lose.
