Friday, April 14, 2017

Wednesday morning linkage- AEI

Wednesday morning linkage, via Positano, Italy - AEI:

3. Chart of the Day I (above). The market for NYC taxi medallions has been very thin lately, with no sales or transfers at all in many recent months. But based on the sales that have taken place (including only one March sale for $241,000), the chart above shows that prices have fallen back to the January 2004 level. And compared to the peak of more than $1 million as recently as the summer of 2014, taxi medallion prices have tumbled in value by more than 75%. A tough economic lesson for the NYC taxi cartel that cartels aren’t forever when something better like Uber comes along….. but a great boon for consumers.
4. The Italian Taxi Cartel Prevails Though, as Uber is now banned in Italy for unfair competition. “Unfair” for whom? Well, taxi drivers of course, certainly not for consumers.
Note: I was in Rome last week and used Uber several times. UberX isn’t available so it’s only Uber Black Car, which are all black BMWs and Mercedes, and the drivers wear suits and ties. The cost is about the same as a taxi, but Uber is much more convenient (no cash involved) and the service is much better. Losing Uber in Italy will be a big loss for consumers."

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