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[–] ownsauce 0 points 10 points (+10|-0) ago 

Since Uber only has 4% market share, there has to be something else going on here. Regulations? Mismanagement? Bad business model?

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[–] mosesohmoses [S] 0 points 8 points (+8|-0) ago 

I'm going with all of the above. But also "since the entry of Uber (and similar services) in the marketplace and the publicity they have received, the liquidity in the medallion market has been adversely affected in the immediate term." - ELI5 someone?

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[–] Zyaode 0 points 22 points (+22|-0) ago 

Taxis require government-mandated medallions which require a fuckton of paperwork to get, something like a million dollars per medallion. They started off as a way to ensure taxi services were safe and all that but through cronyism got turned into a way to prevent new/better entrants into the market; they basically stopped issuing new medallions and so you have to buy them from one of the bigger taxi companies at an inflated price, meaning in effect they were just being traded between behemoth companies.

Uber, technically not being taxis, doesn't use medallions and so their effective worth has plummeted while at the same time the dinosaur companies are still trying to trade them at historically inflated values; however literally nobody wants them because the system is so retardedly stacked against new entrants if you play by those rules.

Source - an unlicensed taxicab driver bitching about it to me in 2013