Taxi medallion

A taxi medallion, also known as a CPNC (Certificate of Public Necessity and Convenience), is a transferable permit in the United States allowing a taxicab driver to operate. Several major cities in the US use these in their taxi licensing systems, including New York City, Boston, Cambridge, Massachusetts, Chicago, Philadelphia, and San Francisco. The New York City medallions are the most valuable, once worth over $1 million each; however, competition from mobile app-based vehicle for hire services has reduced the value of medallions.

A New York City taxi medallion

According to The Washington Post, medallions were "the best investment in America",[1] but—due to competition from mobile app-based vehicle for hire, taxi medallions have decreased in price.[2][3]

Historical prices

Boston

In 2013, the price of a medallion was $625,000.[4] In 2014, that price had risen to around $700,000.[5]

Cambridge

In 2014, a medallion was worth nearly $700,000.[5]

Chicago

The total value of all medallions and assets related to them had a value of $2.5 billion in Chicago in 2013.[6] In 2012, medallion prices ranged from $87,000 to $385,000.[7] In 2015, Chicago's average medallion price was under $230,000, down 30% from 2014.[6] In 2018, they had dropped to a range of $30,000 to $100,000.[8]

New York City
Further information: Taxicabs of New York City

The total value of all medallions and assets related to them had a value of $16.6 billion in New York City in 2013.[6]

In 1962, the market value of a medallion was around $25,000. The price rose steadily. In 2005, an individual medallion was around $325,000 while a corporate medallion was approximately $375,000.[9] Around 2010, the market value of a medallion was around $600,000. It peaked around 2013 at over $1,000,000. Between 2014 and 2015, New York City's non-corporate medallion price dropped 45%.[6] In 2015, the price had fallen to approximately $650,000.[10] As of 2018, one can now purchase a medallion for less than $200,000. On July 11, 2019 sixteen medallions were offered at auction, three of which sold for $137,000, $136,000 and $138,000, while another thirteen medallions had no bidders.[11]

Philadelphia

In 2005, the value of a medallion was roughly $65,000 to $80,000. As of 2018, the value was around $50,000.[12][13]

San Francisco
A San Francisco taxi medallion

Prices were once $250,000 but have since declined.[14]

gollark: I prefer that.
gollark: I use CC because OC recipes are evil.
gollark: `git git --git git`
gollark: Your hostname is `wlan-t-219-37-dhcp`?
gollark: That is a *weird* terminal prompt.

See also

References
  1. Badger, Emily (20 June 2014). "Taxi medallions have been the best investment in America for years. Now Uber may be changing that". The Washington Post.
  2. Madhani, Aamer (18 May 2015). "Once a sure bet, taxi medallions becoming unsellable". USA Today.
  3. Under Pressure From Uber, Taxi Medallion Prices Are Plummeting, Josh Barro, The New York Times, 27 Nov. 2014
  4. "The Tyranny of the Taxi Medallions".
  5. "What to do about taxi medallions". The Boston Globe. August 5, 2015.
  6. Sibilla, Nick (16 August 2016). "Are taxi medallions too big to fail, too?". Fox News.
  7. https://www.cityofchicago.org/content/dam/city/depts/bacp/publicvehicleinfo/medallionowners/taxicabmedalliontransferprices010313.pdf
  8. https://www.cityofchicago.org/content/dam/city/depts/bacp/publicvehicleinfo/medallionowners/2018TaxicabTransferPrices040118.pdf
  9. http://www.taxi-library.org/goldman2006.pdf
  10. "The 'Uber Effect' Is Crushing Taxi Medallion Prices And Spilling Over Into Public Markets". 1 October 2015.
  11. "Episode 643: The Taxi King". NPR. 23 May 2018.
  12. MATHIS, JOEL (March 9, 2015). "The Price of a Philadelphia Taxi Medallion Keeps on Dropping". Philadelphia (magazine).
  13. "3 Taxi Medallions Sold by Phila. Parking Authority, At Bargain-Basement Prices". CBS Television Stations. 6 May 2015.
  14. "For San Francisco Cab Drivers, Once-Treasured Medallions Now a Burden". KQED. 24 September 2015.
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