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A comment on Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue. Parent comment

Re:Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue by astrodust on Monday December 19, 2016 @09:07PM (#13216810)
Where I live they were already working to phase out the medallion system by introducing new permits for cabs that don't require medallions. They're cabs just the same, with the same requirements for insurance and such, but were a way of expanding the number of cabs without expanding the medallion pool.

This softens the depreciation in the medallion market. The cab drivers who paid a lot of money for their medallions would be furious if they're worthless overnight. This way it takes 10-15 years for them to fully depreciate.

Then Uber showed up and decided they didn't need a proper license or anything and shit got crazy.

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Re:Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue by Eridrus on Monday December 19, 2016 @09:34PM (#13216943)
From what I can tell, cities have largely been able to kick Uber out, if they want to, but many residents are not interested in eating shit from taxi companies for another 10-15 years, so it's been hard to kick them out by appealing to their sympathy for the medalion holders.
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Re:Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue by astrodust on Tuesday December 20, 2016 @02:13PM (#13222925)
It's not "sympathy" for medallion holders, but the fact that those holders have considerable political sway. Anything too dramatic, too abrupt will be staunchly opposed.

A more gradual phasing out helps to ease the pressure on this system and move to a more market-driven approach.

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