How Debt Is Crushing Taxi Drivers' American Dreams
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- Опубліковано 28 вер 2024
- Thousands of cab drivers are on the brink of bankruptcy because of predatory lending. What is the emotional toll of having the worst debt in America - and knowing just how screwed you got by the city?
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“Sometimes I curse myself; I spent almost a million dollars to buy this ride.”
Watch Next: What it likes to be an Uber driver in a city you can't afford to live in - bit.ly/2x1ayE4
VICE News Pretty soon there won’t be UBer or Lyft because of self driving cars. Imagine that, not having a yellow cab taxi take you on the long route...!!!
They shouldnt even pay 1 dollar...
Vice news will be dead soon.
So pretty much they bitchin because of uber and Lyft. Thank u competition!!!!
uber killed taxis, netflix killed blockbuster, video killed the radio star. That's how it goes.
Tyrone 2 Tones and nobody cares
Fake taxi killed taxi
Sab jagah yeah hi khaani hai uber destroy every middle class Taxi and auto
Not true, their archaic business model killed them. No industry can survive if it doesn't adapt to current demographics. Even McDonald's is offering Artisan-Style burgers now.
@@mementomori506 Uber and Lyft aren't taxis and never claimed to be.
1.3 million? I went to flight school and my sister went to medical school and it didn’t even cost us 1/6 of that.
I can sell your a reliable twin engine private jet for that price so you can own a air taxi business. These people got majorly ripped off.
Rolman80 80 i’d be retire at that point, i’ll let my kids worry about that ha.
As a citizen of Florida I can't speak for the rest of the country but the way that taxi services are down here the industry deserves to died.
its the same in almost every country
Yup
@@1usi0n Not in Japan. Taxis are expensive but fairly regulated. Uber here is regulated to avoid all the problems and unfair burden on drivers. NY City and the US government simply allowed these situations to occur.
Long Island taxi drivers used to get away with charging shylock rates to customers. To hell with them. Uber and Lyft have put them where they belong.
I spent $50 for a five minute ride in Florida. Screw them.
Y’all had a monopoly on the business and you drove up the prices so high until YOU forced Uber and Lyft to be created! The world changes. The taxi business is obsolete!
Earnest Dunbar Jr. You used to have to watch these guys like Hawks so they didn't drive you all over town. They could have done better they chose not to. Plus the racism.
Yes, yellow cabs in New York are famous for not picking up black riders. It’s partly why your Uber diver can’t see your picture till they accept the ride.
@@iancarrey4123 yellow cabs not racist anymore, they need the money now
offchance that is so sad but always the case that it takes the color green for someone to change their racist ways 🤦🏾♀️
Yes that’s true “medallions” were used as a collateral for bank loans and once their value collapsed it bankrupted people.
Drive an Uber you gotta adapt. if you keep treating riders like trash then you wont be able to drive uber either.
I live in Sydney, Australia and I have had multiple bad experiences with Taxi drivers. They wouldn't stop and sometimes refused because my trip wasn't far enough. Uber drivers show up on time, will take me anywhere and offer water. Taxi drivers did this to themselves.
In România, The taxi industry is crap, always overcharging the trip, crap taxi drivers and poor services... On The other hand, uber has resonable prices and the drivers know hot to talk with the customer... The taxi industry deserves to die
@Nezumi Speed lol, someone got their feelings hurt.
Why would they pay anything in order to go to work, that makes no sense? Taxi drivers are not investors, and they simply made a bad investment... Is this any different from people buying BTC at the peak? Is this any different from irresponsible consumers taking out similar exorbitant loans to buy houses to flip in less than a year, and then foreclosing? I dont think so!
BTC will be 100k a year from now
@@jarenge4255 Regardless, that's not my point. But to elaborate on that, what if you had to pay 500k for a license to trade BTC? Would that seem like a good purchase, just to be able to involve yourself with that market?
BITCONNNNNECTTT
Cab companies are done. They either turn to ride sharing and compete or be left behind.
Loro sono umano actually, ride sharing services will probably die out. They don't bring in nearly enough revenue to offset the cost of labor. Lyft and uber have never been profitable and never will.
well time had change... only way to survive in life is to see the future before it happen... that why you study so you can...
Yup, taxi drivers are done for. Ride-sharing is just a stop gap for Uber’s automated fleet.
As someone who has been visiting New York City for the last 30 years to see friends and family, I’ve always had terrible luck with the cab system there. As a black woman, it’s not uncommon for them to not stop, and one time I got into a trolley line and the cabbies pulled up and wouldn’t take me making excuses like “I have to use the bathroom“ but then would immediately return to the back of the line possibly waiting for a white fare. My friends from New York brushed it off because they’re so used to it, but it was humiliating. Now the only time I take a cab is when I’m with my parents who are older and look like they have money despite being black. LOL but otherwise I take a rideshare or public transportation.
DaPopoloinParadise inner city black youth ruined it for u, they’re not just racist to be racist
@@sk8punk318 Past experience is a horrible excuse to be racist. Black people have had to accept that some white people are racist. It hasn't ruined things for all white so why would this?
@bob thompkins Poor people commit crime. Wow thanks.
@bob thompkins but poor whites do.
@bob thompkins You can be both an immigrant trying to make a living and racist. They are not mutually exclusive.
So basically regulations killed the industry, medallions create a shortage of taxis and drives the price of being in business way up.
In this case yes it was done wrong. Some industries need regulation and others are better with less of it.
no uber killed the taxi industry. The taxi industry even with regulations was fine.
Fred Minville wrong. Uber and Lyft killed it. The lack of regulation allowed unequal competition
@@B33SON1 Uber and Lyft just took advantage of the void left by what was once was a terrible industry. Nobody liked taking taxis. Remember when you called and got some dispatcher who couldn't give you any idea even if a cab was available let alone when it would arrive?
It’s a cartel set up, control the supply to drive up the price.
they weren't cryin when the bubble was forming and they all became millionaires....but now they cry and cry until they die
I went to NYU. I never had ONE good experience with a Taxi Cab. I was there for 4 years 2005-2009.
They aren’t there to provide a good experience, they’re transportation.
@@richardleston5237 no..every business strives to provide a good experience for it's customers unless it is some sort of monopoly.
Abhishek Dev A “good experience” is relative. Can you describe what a good taxi cab experience is to you?
@@richardleston5237 I should have been more articulate so here I am. No business strives to provide a good experience to it's customers they have to do that because of competition. Once competition goes away they do not care about customer experience.
I had a taxi driver take the long way home and I tried to tel him where to go and he acted like he didn’t speak English. We got home and refused to pay him the total because he racked up the fair. All of a sudden he spoke English and called the cops on us. Luckily the cops were on our side.
There were claims of predatory lending, which I'd like to hear more about.
That said, if these folks were financially literate, they would not have borrowed so much against their home or other assets. For that, they -- and our inept education system that still doesn't teach personal finance and financial responsibility -- are mostly to blame for their current situation.
People learn math, but have no idea how finance or economy works, that is the problem.
I'm sorry, but the only reason medallions had so much value was because of artificial supply constraints which were the results of the corrupt taxi industry constraining supply and behaving like a cartel. These people invested in that and should have weighed the risks of disruption. Just declare bankruptcy and start again hopefully having learned a valuable lesson.
What's the point of saying you're sorry? Listen to this guy, such a callous turd.
Facts
I think what makes it a little more complicated is that they used their homes as collateral.
If they just got the medallion with a down payment it would be just like if you buy a house and the value goes way beneath what you paid you would just declare bankruptcy and let the bank foreclose. Since these people used there house as collateral not only are they losing what they paid towards the medallion, they're also losing their house.
Oh; the good ole days.Refusing to leave Manhattan. Not picking up minorities. And of course taking the scenic route on rides.
Sorry. I don’t feel sorry for them.
jeffthornton my dad always gets robbed by minorities or they don’t pay that’s why he doesn’t pick them up
@@rainbowstraw23 yet, Uber is fine. Sounds like "always" was a bit of bullshit.
@@stanleyc2978 taxis make their money by picking up random people hailing for a ride.
Selina Kyle Yea and now he picks up nobody. Funny how that doesn’t happen to Uber or lyft.
Selina Kyle with the debt he has nothing left to rob from him
every taxi driver ive ever encountered in NY was just rude asf and the riding price is insane. I feel for them but I can see why Uber and Lyft took over tbh
All the taxi drivers I’ve met have been super nice. The price is way too high though
This is nothing new, the industry changes and adapts with the times. The taxi industry was one of those who thought they could have a monopoly in their field and provide a garbage service. Uber came in with a better, cheaper and more efficient model.
This is just like when I lost my job at the Bowling alley, when they got those pesky machines to restack the pins 😢
They made a bad investment. Plain and simple... Now they dealing with the consequences of their actions
The issue is the model used in NYC...I drove for 5yrs here in TX from 2001 to 2006. I leased my cab for $55 to $75 a day/shift...if I made $400 in a shift or if I made $50 that didn't change...the cab company was issued X number of licenses from the City...so even if all their cabs were on the road at once their economics were pretty set on stone...my lease covered the vehicle and the dispatch service overhead.. everything else went directly into my pocket...the NYC was never sustainable
WHEN AN APP. IS YOUR BIGGEST COMPETITION, IT'S PROBABLY TIME TO CALL IT QUITS IN YOUR CURRENT PROFESSION.
Especially when your job is based on a Victorian-era process of buying 'medallions' to be allowed to drive a cab...... 🙄
somethin' like dat.
This is why education in economics is essential. It should be something we get across in elementary school, not university.
Wow, where was my parade when my industry went away. I evolved and now I am retired.
3:38 -"I purchased my medalion in 1990" price of medalion then was almost the same as it is now. So this dude didn't lose anything on his medalion, but still complaining because he didn't get to sell it for a million. That's what happens when you're greedy.
Now why are there still taxis, its like delivering mail by horse and wagon...taxi is DEAD!! Theyre killing themselves due to the fact they woke up and see they are already dead.
Terrible news reporting! VICE NEWS failed to explain the purpose of the medallion! Why do these taxi drivers need a medallion to work? Learn to explain the source of the problem! Just awful!
WTF, you don’t need to be a taxi driver if things don’t go well, just change the job !!!
If you think paying 1 mil for taxi license is a good long term investment, you are probably not smart enough to get any other job tbh
Taxi regulations were insane. These new companies are providing at the very least a competent service with a way to check if the drivers are trying to scam you.
"they are harassing by going after the debt"
Seriously? That is what happens when you take on debt...
Because it's not you who got phuked over
@@yasmanibravo2948 So? Are you saying that we should just bail out all people who have made financial mistakes?
@@Immaturity not mistakes! people who have been prayed on and taken advantage of! Those predatory payday loans that have 700% interest wtf.
@@yasmanibravo2948 what do you refer to when you're talking about payday loans? that has absolutely nothing to do with this. The video talks about the value of taxi medallions. Plus payday loans often have higher interest than 700% this is because 1. Interest compounds and 2. The '700%' is APR, or, annual percentage, since payday loans are supposed to be paid of the next 'payday' (week or month), this is only a 12th of the year, than taking in account that most payday loans are below $1000, meaning that if you were to get a payday lone and you were to loan $400 and you had to pay $550 back (which to be honest, does not seem crazy) this is a 37.5% interest rate in the first month, however, to make an APR out of this we must do this for every month in the year so 1.375^12 = 45.67014368834, which means the APR for this would come down to 4567.01%. Which seems much higher since it is now placed out of context.
I always hated taxis since they are rip offs with how they charge you, but I feel bad for drivers just trying to make a living
Taxi drivers in New York were making $350k? WOW
Simple economy, medallions expensive so less people buy them, it is shortage created by regulation, so taxi can charge for ride more. Anyone can drive car, medallions against free economy system.
@@ggsay1687I understand why, I just never envisioned that Taxi drivers would make more than doctors.
350/day
The financiers and insiders who loaned money against medallions were the ones that took advantage of the taxi drivers more than Uber or Lyft did.
Ultimately the smart phone made the taxi medallion worthless because now everyone has an encyclopedic knowledge of the city right on their dash. And so anyone can be a driver now with no study or training.
You heavily bet on the wrong horse right there. No, the government or the city has no obligation to make sure you get your money. You have to choose a job that is in demand and profitable, that's the free market for you right there. They didn't spread their investment, it failed, they regret it - that happens to us all.
If NYC wasn't expensive enough already why would you pay more for a cab? These guys made a terrible investment from the start, yeah the city kinda screwed them over but I wouldn't pay $1M for a freaking medallion. This cab drivers are still trying to live in the past, one guy even said "I want to take my kids to college". People will dig their own grave and then complain about it smh.
Why are you still driving a taxi?
It really does suck for these old geeysers who were overly comfortable with their lifestyle...charging exorbitant fees just to drive people around and New York City loved it since everyone but the consumer was winning. Then Uber and Lyft came and destroyed them. These cab drivers should relocate to where cabs are still needed like rural towns where Uber is not willing to exist.
Bottom line is, either these drivers fell for a scam or made a bad business decision to buy overpriced medallions. If it was a scam, they should band up and go after the scammers. Or set aside their contracts for fraud.
If however they made bad business decisions, should they get bailouts? Because people make bad business decisions all the time.
How about a story of how the drivers wouldn’t leave Manhattan, would ignore minorities, would be disrespectful to passengers and would jack up fares.
It to mention, even when the medallion was almost paid off, would refinance to buy things they now wish they hadn’t.
When we have allowed bankers and lawmakers to set up an entire economic system based on consumer debt, why is this surprising? What else do you expect?
And what led to the taxi service was the wait for it to arrive to your home some days waiting for about 4 hrs for 1 to show up
I've been kicked out of a cab b/c I pointed out that his meter wasn't on. He was just trying to take advantage of intoxicated people....Never had issue with Uber drivers....
Lol the guy who bought a medallion 4 years ago..... Uber was pretty prevalent then.....
Haha yeah now he's half a million dollars in debt, hilarious!
Really? C'mon his life is ruined, maybe not the place for a "lol"
Why the hell would you take a half million dollar loan to drive a taxi??? Some quick math will tell you that you will never pay that off with driving and if you were relying on the value to just keep increasing because of it's monopoly status than you get what you deserve.
This is business using government to keep supply low for their own gain.
Rideshare companies didn't exist during the time. Most of these people were driving taxis all their life and know no better.
They should declare themselves bankrupt and start from scratch working for uber or lyft or do something else. They made a bad investment.
i’ve visited NYC once - me and my mums friend took a yellow cab, and her card was copied and used illegally. Uber is so much more secure in that sense - no wonder it’s dying.
Did you call the taxi company responsible to inform them of the crime?
!? i assume the family friend did, we were just visiting
This is horrible, but is Vice now suggesting that we pass laws that mandate that nobody every have bad luck or bad investments? This is why I dislike Vice these days, they are like John Oliver, pointing out everything that's wrong but never suggesting anything but government bail outs. The one driver said "they" spiked the price to a million dollars. WRONG - Buyers did that, you made the decision to pay a million bucks for a taxi franchise.
Avalanche2 what does John Oliver have to do with anything? Most of his segments highlight government and corporate corruption.
Tying your house debt to Taxi medallion was a bubble waiting to burst.
And some get suddenly ill and need hospital and have to go bankrupt.
I think it is unfair what happened to these people but at least they had the choice to take the risk.
*No sympathy for taxi drivers at ALL !!!! First off they picked the job, secondly they charged too much anyway...thank god for lyft and uber*
This is such a stupid video. These guys bought their medallions in the 90s when the medallions where reasonable. Then they refinanced numerous times to pull equity out of the medallion when the price skyrocketed expecting it to go up forever. When the bubble burst they are stuck with the debt. Hey buddy what did you do with the cash you pulled out.
Yeah I didnt understand how some of these guys were driving for over 20 years but still owed hundreds of thousands of dollars.
I'm pretty certain that 5 years ago all of those dudes were living way above their pay grade being sure that medalion cash will keep coming...
it's so annoying that when taxi driver gets greedy and fucks up everybody is compassionate and helpful, but when finance guys do it then they're the devil and everybody's happy.
why not just drive for uber
Adam K because they don’t have money to buy a car, but were able to finance these taxi medallions
@@sharktv3000 they can still drive under uber lol just pick people up in the cab
@@guccigucci5002 youre not very smart are you?
@@AlxndrXX and you are a moron. uber you would may more and you can still use the cab to pick people up dip shit
This is crazy, how is this legal? How can a cab industry be regulated but not a ride share company. 😕
Because the regulations only serve to protect a monopoly, and not the consumer.
Can industry is run by the mob.
@@ericp1139
"Can industry..."
Yes, especially the canned cat and dog food industry...
The "bubble" that is always spoken of, reported about is failing! All of the "Bubbles" are bursting. I'm not looking forward of what's to come in any situation or any "Bubble." Its hedged to the max on greed.
They never discuss how rude they are and how much they over charge for trips. Learned very early on to avoid them at all costs. Now they don't want to move with the times and what others to fix the issue they created.
same as australian taxi owners. bad luck i guess.
The American dream was actually a nightmare.
Their American dream became a nightmare.
@@Tyler-Wiley why only theirs? There's many people (including me) who thought getting a loan for a degree would help improve our lives and it backfire on us.
@@tecpaocelotl
What did you major in?
Always let the market decide how many businesses are needed. Some bureaucrat sitting in an office is clueless as to how many businesses are needed to supply demand.
All the cabbies I rode with tried to screw me over. Driverless cars can't come fast enough.
I am exhausted from hearing about the greed and corruption in the free World.
@Barry Vaughan I already live there. I am not suffering. I am pitying. I should just learn to not care and ignore.
“I’m going to war without a weapon”
Sad to see this. In Sweden you only need to get a Taxi certificate and that is free of charge..
The medallion cost was a bubble. They thought they had the industry monopolized and good ole uber said nah fam and brought in innovation that was long overdue. Seven figures debt to get into a field of work is an outrageously poor investment.
Gypsy cabbing is illegal in most cities for a reason. You don't make someone buy a business license for several hundred thousand dollars and later allow gypsies to do it without a license. The license excludes others from operating, that is why you buy it. If you bought a house for $400,000 and spent 30 years paying it off how would you feel if they gave away homes for free after you paid off yours?
declare bankruptcy and start over. why would these people hold on to negative equity doesn't make sense. you will be better off working minimum wage job and not driving taxi with that kind of equity level.
@Yare Time you shouldn't hold onto negative equity property. just get a rental before declare bankruptcy then get out of house. you gotta think a way to get out of mess rather then praying it will get better.
Thats crazy!!! Driving 36 years and you OWE half a million???? Theres no way in hell. Nope. Not unless im making 4 or 5M could I even entertain being saddled with that sort of debt.
This is the greed of the city...
Don't you mean how debt in general (student, housing, etc.) is crushing the American dream?
And before someone chimes in about it, try doing anything to get a head that doesn't generate debt
blockbuster, beta max, mtv, hair metal, and now taxis. Their time has passed
RadioShack too
VHS and DVDS
People killed themselfs !
Where I work the worst people I deal with are cab drivers. Not all but the overwhelming are just too rude and nasty. Plus they are very greedy as well.
Student loan debt is crashing my generations' American Dream.
@Barry Vaughan False. Debt free myself. My peers not so much...
@Barry Vaughan The American education system indoctrinates its youth to go to college. Affluent American families gravely encourage their offspring to pursue a degree to quote, "Have something to fall back on." $100k investment as a fail safe for jobs that dont exist, irregularly hire, or require further education and experience to even be considered. What worked for my parents in the pre digital age is obsolete in contemporary times.
Two words Protected, service. Those two words never last long on the market whether its a free market or regulated one
I want to feel bad but I don't. Does anybody, really?
My memories of taxi drivers includes about 10 years ago when I came of drinking age and realizing that their exorbitant prices were the only option for getting home because public transit shut down when the bars closed.
A friend of a friend of mine was struck by a car alongside the highway trying to walk home because he couldn't afford a taxi. Other friends have chosen to drive drunk instead of paying for a taxi.
They held a monopoly on the industry for so long, caused a lot of pain for a lot of people, and now they feel like they deserve sympathy for this?
How is this any different from a person getting inflated sub prime mortgage to buy a big house (that they simply can't afford on their current income)?
Its all greed, these drivers dreamt of making a killing by selling medallions at a higher price in future.
Of course predatory lending is another big part of the problem, that has to be regulated and controlled by humongous fines. Maybe those fines can offset some of these debts.
However individuals (i.e drivers) have to take the responsibility for making bad investment decisions. Sadly I just don't see a way out for these drivers. Filing bankruptcy maybe ( can't elaborate, as I don't know enough)
P.s: I am an Indian, not an American. Lest anyone tries to attach any ulterior motives ;)
Debt slaves for life. Corporate america gone mad.
more like NYC regulations gone mad
There should have been a law that these medallions could not trade hands above “face value.” These are not investments and never should have been treated any other way than permission from government to operate a taxi.
I've thought about this issue for a long time. I have no personal stake. But the way uber at al were basically allowed to breach limited licenses was a legal disgrace. I say that as a lawyer. I'm ashamed how the law in this country has morph ed into a lottery system. That was the base of this country's success, the law, as imperfect as it was. Now it's a comedy.
I caught a cab from an airport to a rental car agency. It cost me $35. I later took Lyft from that rental car agency back to the airport and it cost around $9. Taxi's in a lot of places are not even trying to compete with their prices.
I was amechanic at one of the biggest taxi companys on the eastcoast when Uber first came onto the scene and I slowly watched the taxi business die smfh
Even in the 90's $800-$1mil and taking out a loan for the medallion. How did that seem like a good idea.
The medallion is $1.3 mil. The loans are $400-500k. Their kid's education is going to be $100k too. Guys, are you nuts? Get out of New York! I love NYC, but this is madness. Move to suburbs of NJ and get a house for $100k. Guess what? Your wives and kids can help you pay the mortgage! I, a daughter, helped my parents get out of financial slam when I was 18-19. You deserve to LIVE and ENJOY LIFE, not being enslaved!
They had 7 taxi drivers commit suicide over the year? Didn't they have 4 officers do that in the last week? What is going on in NY.
This is literally analogous to the student loan issue.
Now you understand Travis Bickle's anger.
and who's fault is that? racism, aggression, greed......
What's the point of the medallions if they let anyone drive passengers for money.
Honestly, it's heartbreaking what these families have to go through. But if you work in a low skilled job that can be easily replaceable. You should not be surprised if you are all of a sudden obsolete. People must adapt and plan for the future.
All the comments are just saying how they hate taxis and that so true, I don’t have understand why they are a thing anymore. Just get a job at Uber or Lyft and then quit being a taxi driver
Those medallions were too much to begin with... what a hustle
The taxi business model is outdated , ride share is more affordable for consumers ,
times are changing. Welcome to the
free market system. Job retraining
programs are needed.
NYC Taxi Medallion is the Dutch Tulip Mania circa 1637
Is it wrong of me to not feel bad for their situation? especially the young guy. 5 yrs ago every one knew taxi industry was dying🤦♀️
I just got out of the Taxi industry. Spent 5 years involved heavily through the driving and dispatching side of two very successful taxi companies. I spent time doing this job during the pivotal point when Uber/Lyft started dominating the market. Taxis are a dying industry. Taking a taxi still costs more than taking an Uber here and it’s not much competition.
Taxi drivers are rude. If only would treat their customers with kindness and respect, I'm pretty sure if they were nice to their customers they would support them.
WHY DONT THESE PEOPLE JUST GET A CDL? . TAXI DRIVING IS DEAD .
This is 100% on the city of NY for not enforcing
their rules. Not overly surprising....
Next up: How Debt is Crushing College Graduates American Dream... Followed by: How Debt is Crushing Home Owners American Dream.. Then, How Debt is Crushing Bitcoin Investors American Dream... How Debt is Crushing Single Moms American Dream... How Debt is Crushing Aspiring Singers American Dream... How Debt is Crushing Immigrants American Dream... How Debt is Crushing the African-American Communities American Dream... How Debt is Crushing Women's American Dream... How Debt is Crushing Retired Seniors American Dream... How Debt is Crushing Truck Owner's American Dream..
Andrew Yang. Universal Basic Income.
Agree!