Wednesday, August 13, 2014

Is the golden goose still quacking? I wonder what the stall is about for the next New York City Yellow Taxi Medallion Auction ?

Actually I think I have it figured out! The City has killed the goose that was supposed to lay a bunch of golden eggs.

Those who think about such things remember how former mayor  Bloomberg was going to multiply the number of street hail vehicles and auction off 2000  new taxi medallions. The auctions were going to help fill a projected $2,000,000,000 budget gap this year. The plan got off to a good looking start last November with record high bids for corporate medallions known as minifleets, sold in twos. That auction, as I reported here was characterized by the big players who were expressing their hopes that the incoming mayor was a reliable friend. Bill de Blazio turned and ran from his decision to hold the line on green non medallion taxis at 6000 at the first frown from the media.

The following auction, held last February had to have been a disappointment to city budget planners. The individual medallions, for taxi drivers only, did not break the legendary million dollar mark. Many winning bids were $200,000 lower than had been hoped for.

Undeterred, the city held another corporate medallion auction on Match 25, 2014. Bids held their own as the big dogs rushed in again possibly throwing good money after bad in a scramble to prop up the paper value of the medallions they're already stuck with


By the rules the auction coming up is to be for taxi drivers.

It's been a while and there hasn't been any word since March.

Taxi fleets are short of drivers now and competing for them. It's taxi drivers paying taxi rent that make a medallion valuable.6000 more non medallion taxis are hittitting the streets.

Good luck auctioning medallions Bill.