SUMMARY
- The iconic yellow taxis are an ever-diminishing breed in NYC, yielding to ride-sharing giants like Uber and Lyft.
- Taxi drivers grapple with gruelling work hours and costly medallion permits, amidst declining patronage and rising competition.
- COVID-19 pandemic exacerbates crisis as taxi flagging dwindles, prompting queries on the future of taxis in the evolving industry.
Iconic to the Big Apple, the yellow taxis have defined New York City's hustle and bustle for generations. But surprisingly, taxi drivers constitute a mere fraction of the city's driving workforce, around 10% to be precise, giving up ground to ride-sharing giants, Uber and Lyft.
This shift owes much to the convenience of summoning a ride-share at a tap, but it also shines light on the difficult work conditions facing taxi drivers. As per the National Library of Medicine, the typical taxi driver grinds out an exhausting average of 9.5 hours daily, for six days each week. Adding to the strain, the drivers must either own or lease a "medallion," a type of permit, which often comes at a steep cost.
In the early 2010s, medallions commanded prices in excess of $1 million, driven by predatory lending, their rare asset status, and some industry leaders paying significantly above the odds. However, this bubble soon burst with the entry of Uber and Lyft, triggering despair among those taxi drivers who had invested in their own medallions.
The downturn was exacerbated by the COVID-19 pandemic, which saw the already sparse flagging of taxis virtually vanish. "Many drivers migrated to alternative work areas following the city-wide lockdowns during the pandemic," shared David Do, commissioner of the New York City Taxi and Limousine Commission.
In today's landscape, taxi drivers are battling for relevance as they work to rebound from the double blow of the medallion crisis and the COVID-19 aftermath. So the question emerges: Can taxis hold their ground in this evolving transportation arena?
WOM Money Picks
Be a part of the winning team | 81% Success Rate.