The financial hardships of the taxi market in the city may not be entirely the fault of the traveling companies – the industry was a house of cards, waiting for the collapse, according to a report.
A Sunday New York Times investigation The guilt of industry leaders who artificially inflated taxi medallions has increased fivefold over 12 years, creating a highly profitable credit market based on questionable lending practices similar to those at the center of the housing accident The market slumped last year and medallions were sold for less than $ 250,000.
While much of the depreciation is due to the flood of Uber and Lyft drivers, the report claims that these were exploitative loans, hundreds of which were interest-free drivers, often immigrants were and their terms were unclear, with high monthly costs.
The report says that some borrowing costs were so high that in one week there were not enough hours left to make a profit and eventually all their monthly fees were paid out.
When the market bottomed out in 201
Employees were encouraged to award trembling loans with rewards and travel, the report said.
The lenders denied any wrongdoing, and the city's former taxi and limousine commissioner said it was not up to the commission to regulate lending, the report said.
But Meera Joshi told the newspaper, "Many people have just watched how it happened."