Medallion Debt Crisis
How Did We Get Here?
Medallion yellow taxis have been regulated by the City of New York since the 1930s. The city caps the number of taxis and sets the opening bid when auctioning new medallions. These factors have played a great role in determining the “value” of the medallion. In the early 2000s, the price was distorted by speculation and predatory lending, with the cost of a medallion topping more than $1 million. In 2014, the rapid introduction in New York City of unregulated ride-hailing companies such as Uber and Lyft created severe economic and personal hardships for taxi drivers, and in particular, for medallion owner-drivers.
With large monthly mortgage payments for their medallions, many owner-drivers lost their homes, suffered health complications, and their children could no longer afford college. In one twelve-month period, nine drivers committed suicide. Because the City had controlled the taxi industry for the previous 70 years, the abrupt changes in the City’s policies could not have been anticipated. The opening up of New York City to companies that were not required to have medallions was seen and experienced by yellow cab owner-drivers as a profound violation of social trust.
Support For Our Proposal
Senator Chuck Schumer
“There are few frontline workers who put in longer hours or suffer from more severe financial challenges than our taxi drivers. I stand with the New York Taxi Workers Alliance in their urgent mission to forge a financial lifeline for their hard-pressed members to restructure medallion debt, salvage their future retirement, and have a fair chance at earning a living wage for all of their many hours behind the wheel."
Letitia James, New York Attorney General
“NYC's taxi medallion owners have been economically devastated in recent years, and the New York Taxi Workers Alliance relief package provides a responsible way to help these small businesses and the industry recover. It's essential that we provide this relief immediately.”
Scott M. Stringer, New York City Comptroller
“This breakthrough proposal offers a responsible and necessary approach to relieve crushing debt for drivers and reduce ballooning costs for taxpayers.”
For decades, driving a NYC yellow cab and acquiring a medallion guaranteed entry into the middle class for drivers and their families, the majority of whom were immigrants. Today, that is not possible and those with medallions suffer. We have a proposal to solve an economic crisis on the verge of becoming a humanitarian crisis.
CBS Sunday Morning coverage of the challenges facing owner operators
New York Times’ Pulitzer Prize winning coverage of medallion debt crisis featuring our members.