| The Taxi Medallion of New York City | | | | There is a network of brokers and agents who |
| The New York City Taxi Medallion is an interesting | | | | manage and lease taxicabs and medallions to |
| form of property. It represents a transferable | | | | independent taxi drivers under daily, weekly, and |
| right granted by the City to pick up passengers, | | | | long-term arrangements for investors. |
| but through regulation the dollar value of this right | | | | As an investment, the most interesting aspect of |
| is now nearing a million. In Fact, Some of the | | | | the New York City Taxi Medallion is the |
| Richest Workers In America are Taxi Drivers In | | | | anti-cyclical valuations. In2009, as the US and |
| New York City. | | | | world economies are shrinking, medallion value is |
| Trading in the price range of $600,000.for the | | | | soaring. |
| individual medallion, and almost three quarters of a | | | | When banks and stock brokerages, construction |
| million for the coveted corporate or "mini" fleet | | | | companies and retailers lay off workers, one of |
| medallion, the New York City Taxi industry has | | | | the first places the unemployed workers seek |
| seen its overall value increase by almost | | | | income is in the taxi industry. So, as the general |
| five-hundred percent since the turn of the | | | | economy suffers the number of available taxi |
| century. | | | | cabs shrinks as more people seek them and |
| The Taxi Medallion is a special license plate affixed | | | | those already working are forced to work more |
| to the hood of a New York City Yellow Taxi cab. | | | | shifts as competition for fares increases. |
| It represents the license for picking up passengers | | | | There are a limited number of medallions. |
| from the streets. No other transportation service | | | | Currently just over 13,200. This number was |
| has this right. | | | | constant at 11,787 for more than sixty years |
| The medallion system began in the 1930's. In the | | | | when in the 1990's then Mayor Rudolph Giuliani |
| 1960's all medallion taxicabs were required to be | | | | approved NY City Taxi & Limousine |
| painted yellow. | | | | Commissioner Christopher Lynn to conduct three |
| The medallion number is must be clearly visible on | | | | auctions, selling four hundred medallions. |
| the taxicab roof light, license plates, as well as on | | | | The sales netted the City approximately one |
| the door exterior, and in the vehicle interior. | | | | hundred-million dollars. The politics behind the sales |
| There are different types of "Medallions". The | | | | was very intense and telling, as shortly after the |
| individual, the corporate or fleet medallion, and the | | | | sales were completed the industry applied for and |
| Handicap Access Medallion. | | | | received a rate of fare increase. After a few |
| The individual medallion requires the owner (post | | | | short years another proposal for new medallion |
| 1990), to operate the yellow taxicab 210 nine-hour | | | | auctions was approved by Mayor Michael |
| shifts per year. This underlying requirement | | | | Bloomberg. |
| guarantees the availability of taxi transportation. It | | | | The successive medallion sales created slightly |
| is not unusual for two taxi drivers to form | | | | more than one thousand-forty new medallions. |
| partnerships and share the medallion, or for an | | | | During these auctions the Handicap Access |
| individual owner to lease out the taxi for the | | | | Medallion was introduced at a substantial discount |
| shifts he is not working. | | | | to regular market prices. This was to entice |
| The corporate or fleet medallion does not need to | | | | owners to pay the extremely high price of |
| be operated by the owner. In fact, the owner | | | | retrofitting vehicles with automatic ramps to |
| need not have a NYC Taxi operator's license at all. | | | | accommodate wheelchairs. They were all sold, and |
| The fleet medallion can be leased, and often is on | | | | on a percentage basis have risen in value more |
| a shift-by-shift basis, twice per day, for as much | | | | than other medallions. |
| as $140 per twelve hour rental. | | | | |