It was not supposed to turn out this way when Mr. Isac slid behind the wheel in 2005. Soon he was earning $200 a night driving. Three years later, he borrowed $335,000 to buy a New York City taxi medallion, which gave him the right to operate his own cab.
But now Mr. Isac earns half of what he did when he started, as riders have defected to Uber and other competitors. He stopped making the $2,700-a-month loan payment on his medallion in February because he was broke. Last month, it was sold to help pay his debts.
“I see my future crashing down,” said Mr. Isac, 46, an immigrant from Burkina Faso. “I worry every day. Sometimes, I can’t sleep thinking about it. Everything changed overnight.”
Taxi ownership once seemed a guaranteed route to financial security, something that was more tangible and reliable than the stock market since people hailed cabs in good times and bad.
Generations of new immigrants toiled away for years to earn enough to buy a coveted medallion. Those who had them took pride in them, and viewed them as their retirement fund.
Uber and other ride-hail apps have upended all that.
Just as homeowners faced ruin when housing markets sank, struggling cab owners in Chicago, Boston, San Francisco and other cities are now facing foreclosure and bankruptcy. Many took out loans to pay for taxi medallions, counting on business that has instead nose-dived amid fierce competition. They are falling behind on loan payments, being turned away by lenders and stand to lose not only the medallions that are their livelihoods but also their homes and savings.
Nowhere is the crisis more dire than in New York, which has the largest taxi fleet in the country. Medallions now sell for a fraction of the record $1.3 million price in 2014, and in many cases, are worth far less than what their owners borrowed to buy them. Even if these owners sell their medallions, they still owe hundreds of thousands of dollars — far more than in many other cities where medallion prices were lower to begin with.
In an unprecedented fire sale of medallions, up to 46 of them are expected to go on the auction block later this month as part of bankruptcy proceedings against taxi companies affiliated with an embattled taxi mogul. While the city has previously held auctions to sell a limited number of new medallions — about 1,800 since 1996 — this is believed to be the first auction to dispose of foreclosed medallions, according to city officials.
While the auction has drawn attention to the precipitous fall of the once-mighty taxi industry, it does not reflect the hardship — and heartbreak — of individual owners like Mr. Isac. It is their stories that often get lost in the larger debate over new technology and commutes, and tell of the human cost of the city’s rapidly evolving transportation landscape.
Since 2015, a total of 85 medallions have been sold as part of foreclosure proceedings, according to city records. In August alone, 12 of the 21 medallion sales were part of foreclosures; the prices of all the sales ranged from $150,000 to $450,000 per medallion.
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Estonian ride-hailing startup Taxify has slammed London's transport regulator as "the most hostile regulatory body we have ever encountered", and said it had appealed the loss of its licence.
Taxify launched on Tuesday as a cheaper alternative to Uber in London, but had to suspend its services on Friday after Transport for London said it was "urgently investigating" the company and revoked its licence.
Taxify chief executive Markus Villig said in a blogpost that he would "do everything possible" to bring Taxify back to London.
The issues stem from Taxify's unusual licensing arrangements in London.
Unlike other private hire firms like Addison Lee, Taxify is not licensed as a private hire operator under the name "Taxify." Instead, it acquired a totally different cab company which does hold a licence, called City Drive Services.
The idea was to circumvent the lengthy licensing application process and launch quickly in London. Taxify has argued that any drivers working for Taxify are in fact working for City Drive Services — it just provides the booking software, and therefore doesn't need its own licence.
Tfl isn't buying it. In its announcement on Friday, the regulatory body said Taxify "is not a licensed operator" and confirmed it had revoked City Drive Services' licence too. It warned drivers not to take any bookings through Taxify or City Drive Services.
Villig wrote: "It was a great surprise to us that, following the launch of our service, and without any contact, TfL launched a secretive investigation by requesting rides using the Taxify app and threatening drivers with the loss of their license."
He slammed TfL for doing "everything in their power to keep the current private hire monopoly in place."
Though Villig didn't name Uber, the San Francisco ride-hailing firm has dominated London's cab market since its launch in 2012.
Villig concluded: "I believe London deserves better and I will do everything possible to get Taxify back to improving the London marketplace for drivers and consumers as soon as possible."
It won't be easy for Taxify to relaunch in London
Villig faces an uphill challenge to restore Taxify's service in London, not only from TfL. Black cab drivers have been hugely critical of the company, and particularly its promise of cheaper fares.
Although Taxify takes a lower commission fee than Uber of 10-15%, black cab drivers said the lower fares equated to "slavery" and suggested drivers wouldn't be able to make enough to live on.
And a black cab driver co-operative, the London Taxi Drivers' Association, wrote to TfL shortly after Taxify launched, arguing that it was an "illegal operator."
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GMB
The taxi and private hire industry badly needs reforming in face of a flood of unregulated out-of-town "cowboy" operators, a union is warning.
The GMB called for action to halt the "Wild West" situation brought about by deregulation.
Towns and cities across the UK are being besieged by a flood of out-of-town cars and taxi operators, the union said, which are touting for businesses in areas where they are not licensed to operate.
The GMB is raising the issue on Monday at the TUC Congress in Brighton, a town it said affected by the problem of hundreds of cars touting for business even though drivers have no knowledge of the local area.
Mick Rix, GMB national officer said: "The UK taxi and private hire industry is becoming a new 'Wild West' with unscrupulous operators exploiting politicians' failure to regulate properly.
"We are calling for backing to reform for the UK taxi and private hire industry. The local trade in Brighton, like in so many towns and cities in the UK, is under increasing threat from out-of-town cowboys.
"The 'anything goes' approach is destroying good - and safe, locally licensed - drivers' jobs and earnings.
"Safeguarding is being put seriously at risk on a daily basis, with confidence that cars and drivers are locally licensed being steadily eroded.
"These companies exploit the public by ignoring locally agreed fares set by authorities, and they exploit drivers by encouraging excessive working hours."
source = wscountytimes.co.uk
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The Gravy Train arrives
Conservative MPs have been told they can take night-time taxis to anywhere in London and book hotels for up to £150, even if they have spent the evening in the Commons bar.
MPs are likely to spend much of the autumn in late-night votes, with the Tories expecting that Labour will force all-night sittings before the end of the year as parliament begins key debates on Brexit.
All MPs’ trips have been dropped while parliament is sitting and all leave has been cancelled as votes are held on Brexit tonight and the composition of key Commons committees tomorrow.
A text message from Julian Smith, the Tory deputy chief whip, which has been leaked to The Times, made clear that the rules had changed to make life easier. The standards watchdog no longer insisted on only reimbursing taxis when the Commons was sitting past 10pm, meaning that MPs could give any reason for claiming fares late, he said.
The text said: “If MPs have been working after 10pm on parliamentary matters, they may claim for a taxi to their London area residence or for an overnight stay in a hotel.
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