New York taxi owners do not deserve help from taxpayers
Operating licences became an investment with stellar returns — until the arrival of Uber and Lyft sent values into a tailspin
Bad ideas tend to naturally follow from bad investments. The latest example: bailing out people who overpaid for taxi medallions, the city licence that allows drivers to pick up riders who hail them on New York streets. This all came about because Uber and Lyft have been taking market share at the expense of cabs, sending medallion values into a tailspin.
Just like many homebuyers of the 2000s, medallion owners find themselves underwater on the purchase price, deep in debt and looking for a rescue. They should take a page from those same homeowners and just walk away.