The value of New York City taxi medallions continued to climb in June, according to Matthew W. Daus,Esq., Partner and Chairman of the Windels Marx Transportation Practice Group. Mr. Daus wrote a column for our publication detailing a trend of rising medallion values over the past year – between May 2021 and this past May – and he reported in July that prices rose again in June.
“Based on the… medallion transfer data from June 2022, the uptrend I identified has continued since my original article was published,” said Mr. Daus, a former TLC chairman and president of the International Association of Transportation Regulators. “When considering the new data from June 2022, the average medallion value for Q2 2022 is now $143,585, up from $140,663 based on just the April and May data available at the time of publication. June 2022 also had more transactions than the preceding months – over 100, as opposed to 50-60 in prior months.”
Average NYC taxi medallion values are still far below their 2014 peak, but a variety of initiatives and factors offer hope prices finally stabilized and started climbing:
Medallion Owner-Driver Relief Fund. Mayor Eric Adams and newly-appointed TLC Commissioner/Chair David Do both support medallion debt relief. Mr. Do stated in May that helping more drivers access debt relief is one of his top priorities.
Possible Fare Increase. Under Do’s leadership, the TLC is currently undergoing a wholesale review of taxicab fares. A rate increase may be approved before the end of summer 2022, which could lead to long-term increases in the farebox.
Uber-Taxi Partnership. Announced in March 2022, the partnership will allow customers to order a taxicab directly on the Uber app.
Medallions in Storage. NYC Administrative Code states the TLC can revoke any medallion in storage for more than 60 days. This may spur medallion owners to return to the market as post-pandemic conditions improve.
EV Taxis. Innovations and positive developments with electric vehicles could usher in a new era for the industry.
FHV Cap. All indications point to the FHV license cap continuing in some manner, and the constraint on FHVs may improve the competitiveness of medallions.
Source: Windels Marx