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Uber driving down price of Boston cab medallions, helps put local taxi trade publication out of business
By adamg on Thu, 03/05/2015 - 7:40am
Xconomy reports the price of a cab medallion in Boston has dropped from $700,000 to $500,000 in just one year - and that Carriage News, a newspaper for the Boston taxi industry, stopped publishing last month.
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That's...
..."medallions".
Ayup!
Thanks, fixed!
Good.
Good.
(about the medallion price, that is).
Carriage News....
When I first was trying to get into the news business around here, I had a job interview at the Carriage News. The editor picked me up at the train station in an old station wagon and drove me back to the office to chat. It was a makeshift space (which isn't unusual for journalism places) filled with file cabinets in some sort of warehouse district. A lot of their content, I was told, was apparently articles republished from other taxi newspapers around the country. My understanding is that they distributed it at local hotel lobbies. At least that's how I vaguely remember it. Anyway, I didn't get the job (which says something about how poor my options were at the time). As years passed, I started to wonder if the whole thing was a dream. A whole secret world of taxi cab newspapers? Right. It seemed more like an invention from a Ben Katchor comic than real life. But a decade or so later, I began running into the art critic from the Carriage News, a sweet woman who wrote about theater and painting and so on. I'd run into her at exhibition previews at the Museum of Fine Arts and the like. And I'm still not sure which is stranger--thinking that it was a dream, or that it really existed and had an art critic. All of which is to say, I'm saddened to see this great part of Boston go. And as someone who's been part of two newspapers that died in recent years, my heart particularly goes out to those whose livelihoods are hurt by this.
Thanks for sharing
That's a great vignette about worlds that exist on the margin, places most of us have never been or even known about.
Moving to the web...
...isn't the same as going out of business.
Just because you don't physically print on paper doesn't mean you aren't producing news content. Just because people don't get it in the mail does't mean they aren't consuming news content. This is an idiotic trope in the media business (UHub more-or-less excluded) that is, at best, nostalgic.
It's almost as if the Carriage News is the nexus between two industries that refuse to react in any intelligent way to new technologies that could improve the quality of their product, improve efficiency, and perhaps even reduce costs, choosing instead to demean the new entrants, seek to erect legal barriers to their operation, and insist that once people realize the folly of their modern lives, will return to their old way of doing it.
The big medallion owners seem like a such a nice group of folks
I'm so sorry to see this happen to them.
A good lesson...
..in the benefits of maintaining a good public perception.
The whole tough guy, angry, townie attitude might impress a few knuckleheads and meatheads but the educated public is who you should be trying to impress.
My only relation to knowing
My only relation to knowing about Carriage News is an article they wrote years ago (pre Uber) about how bad it is that cabs accept credit cards. Four or five cabs I took at the time kept a copy of the article and would show it to me when I attempted to pay via card as some sort of shameful plea to not pay by car.
Tulips, too!
Meanwhile, I am outraged--OUTRAGED--that all these tulip futures I've been holding onto have collapsed. I demand that the Boston Public Gardens stop planting new bulbs immediately, and that all third-party gardeners be banned from planting their own bulbs. This is America, and I have a god-given right for my investment to appreciate no matter how stupid or untenable it is.
Not sure what's different in NYC, but...
Medallion Financial, which originates and services loans for medallions in NYC is a public company. In March of 2011, when Uber started in NYC, the stock price has gone from about $8 to $10.30. Medallion prices hit a record in NYC in Nov of 2013, $1.3million.
For one thing...
The cabs aren't absolutely awful in NYC, as they are in Boston.
I'm sure you have NYC cab horror stories, but my experience in general with NYC cabs has been a lot more positive than with Boston cabs.
I'm continuilly amazed at
I'm continuilly amazed at just how many cabs there are driving around at any given time of day in Manhattan. Of course if you act like a tourist they will charge you up the wazoo.
This article says medallions
This article says medallions prices are down
http://www.businessinsider.com/uber-v-medallion-prices-2015-2
There seems to be a recent rise in Medallion Financial Corp. (TAXI) stock but way down since 2013
http://finance.yahoo.com/echarts?s=TAXI+Interactive#%7B%22range%22%3A%22...
But
Uber started in NYC before 2013....TAXI went from $8 to $18 while Uber was operating.
No more cabs on the street?
That can be the only reason that advertisers are no longer advertising, at least based on the reason for ending the print edition. That a cab medallion is worth less would not impact the need for lawyers to represent taxi drivers, businesses that repair or clean taxis or the other services needed by taxi medallion owners and drivers. Just because the value of a medallion has gone down why would that result in lenders disappearing? That claim itself sounds dubious considering most medallions are owned by large companies. Just how many independent drivers actually buy their own medallions?
Perhaps the real reason for ending the print version is that advertisers simply don't see the advantage of advertising in general? Or they see other means of reaching their customers that sidestep this publication? The fact that the publication will remain as a web based publication suggests that the advertising revenue is the present but that perhaps the real goal to eliminate the cost of printed paper?
Even Computerworld, one of the last print version periodicals for general personal computing, ceased its print version and now exists only on the web. No one can argue that the personal computer industry has lost value. But they saw that the print versions are no longer viable.
The various pieces of the digital world: the Web and other digital delivery systems as the delivery vehicle, and computers and tablets as the medium for reading ("consuming") content, continue to subordinate and sometimes completely replace the older and well established technology of paper.
No Lending
The ads have dried up because medallion transactions have dried up. This is very typical of markets where illiquid, leveraged assets are falling in value and people, especially lenders, aren't sure what a good price is. It is often observed in housing markets that start to see declining prices. Transactions dry up and so does lending, until the price discovery process has a chance to work. It is usually a sign of sellers not wanting to acknowledge that prices have declined and that their old expections are no longer valid, or as likely, that if they sell, they won't cover the debt and will have to write a check at closing. There is an old saying in real estate markets, price follows volume. I think we can expect the same with taxi medallions