EconHack 2022 — Uber vs. NYC Taxi

1st Annual EconHack @ Pace University.

The Problem: Uber vs. NYC Taxi

Over the past year, there has been a rise in protests from medallion owners and taxi drivers. NYC legislators are facing mounting pressures and need your help. Come up with a novel policy that will tackle at least two concerns:

Relieve loan-indebted taxi drivers efficiently
Improve public safety (traffic incidents, congestion)
Improve accessibility (location and disability)

Requirements: Use data to back up your policy advice. Be sure to cite any claims that you make with reputable sources.

Context

NYC regulates how many taxis there are by implementing taxi medallions, which confer the right to operate a taxi. This was done to decrease congestion in the city and decrease smog. NYC sells medallions through an auction, and as a consequence the price fluctuates based on demand, while supply is fixed (determined by the city).

Starting in 2011, Uber started operating in NYC as a ride-hail app. With cheaper taxi prices, they started heavily competing with yellow taxis and livery drivers, but did not adhere to the requirement for taxi drivers to have a medallion. Other ride-hail apps such as Lyft (2014) and Via (2015) entered NYC’s taxi industry soon after.

The peak of medallion pricing reached around $1 million in 2014 and then substantially decreased.

Many drivers and corporations would take out loans to purchase a medallion. Drivers or companies who took out loans during the sharp increase and peak of medallion pricing were particularly vulnerable, as taxi fares felt competitive pressure resulting in a decrease in fare prices and demand for yellow cab taxis. As a result, many drivers could not meet their loan obligations.

In addition, without the number of taxis regulated, a surge of ride-hail taxis flooded the streets, contributing to increased congestion and traffic incidents. New drivers who are unaware of NYC traffic patterns or lack proper training when picking up and dropping off customers could contribute to increased risk for pedestrians and cyclists, and an overall increase in traffic.

Ride-hail apps have increased the number of for-hire cars on the road, which resulted in increased accessibility of these services (particularly in neighborhoods that were previously underserved). However, ride-hail apps have increasingly limited service areas with the advent of Local Law 150. In addition, accessibility for individuals with physical disabilities remains challenging, as many for-hire cars are not ADA accessible and a limited number of taxis are properly equipped.

A number of local laws have been created to combat the negative externalities arising with ride-hail apps, including Local Law 147, Local Law 150, and the Medallion Relief Program. However, there remain complications in execution and unintended negative effects of these policies. Your policy must improve outcomes, reduce negative externalities, and/or incorporate improved ways to enforce the intended outcomes of these laws.

Further reading: NYC For-Hire Vehicle Transportation Study

Data

Use any relevant data that you find — it does not have to be listed below, but here are some starting points.

Medallion drivers

For-hire and livery drivers

Traffic

Trip records