May 2, 2016

Uber/Lyft Cause Value Of Taxi Medallions To Drop Over 80% In Philadelphia

The value of taxi medallions required by the General Assembly to operate in Philadelphia has dropped from $440,000 in October 2014, just days before Uber and Lyft began operating in Philadelphia, to the point now where taxi owners cannot sell a medallion for more than $80,000.
Since October of 2014, UberX has provided over 1 million on-demand rides in Philadelphia and at the Philadelphia International Airport, with no medallions and without being regulated by the Philadelphia Parking Authority, as required by state law.  Lyft has also been providing illegal rides concurrently with UberX.
In 2004 the General Assembly passed Act 94 declaring taxi medallions property (53 Pa. C.S. 5713).
There is no doubt that the illegal activities of UberX/Lyft-type services in Philadelphia have caused the dramatic loss in value of medallions which lawful taxi operators are required to buy.  As a result, lawsuits against the Commonwealth for unlawful seizure of property are likely in order to recover the value of medallions lost to this illegal competition.
One way to avoid these lawsuits is to establish a compensation system for taxi medallion owners paid for by the licensing fees generated from regulating UberX/Lyft-type services.
Existing taxi services can successfully compete with Uber and Lyft , but only on a level playing field.   Right now the system is stacked against them as a result of state laws that are inadequate to regulate these new services.
Other 30 Second Fact Sheets In This Series
PUC Imposes Record Fine, But Uber Is Still Illegal In Philadelphia

Distributed On Behalf Of --
Pennsylvania Taxi Association
Contact: Danielle Friedman, General Counsel