In New York, the price of a taxi "medallion" — that's what the license to operate a taxi is called — was $1.2 million at its peak about a year ago, according to USA Today. Now they're reportedly worth less than $800,000, if someone who owns a medallion can even find a buyer, and the price appears to be dropping steadily.
The reason is Uber, which is eating away at the taxi business in New York and other cities. Now taxis in NYC are planning to fight back, basically by becoming a lot more like Uber.
There have been a few cab-hailing apps that popped up since the use of such apps was approved in 2013, but Uber users are going to find the new Arro app extra familiar.
From Gothamist:
Here's what's not like Uber, though: no surge pricing.
Yes, taxis still use the good ole' predictable meter, even if it's rush hour and it's raining.
Arro is currently being tested in 7,000 taxis, but it won't officially launch for a few more weeks.
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The average value of medallions sank for the first time in decades, down 20% from its 2013 peak of $1.3 million.
