New York Attorney-General Accuses NYC of Taxi Fraud, Demands $810M to Be Paid to Drivers

Another Uber Driver

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New York Attorney General Accuses NYC Of Taxi Fraud, Demands $810M To Be Paid To Drivers
Shivdeep Dhaliwal
BenzingaFebruary 21, 2020, 5:51 AM EST


The Attorney General of New York State, Letitia A. James, has accused New York City of fraud and demanded compensation for taxi medallion owners.
What Happened
New York City’s (N.Y.C.) Taxi and Limousine Commission sold medallions, which permit taxi drivers to ply the city’s famous yellow cabs as investments and promised steady growth to the buyers. These medallions were auctioned at extremely high prices between 2004 to 2017, the New York Times reported.
Criticizing the practice, James said, “The very government that was supposed to ensure fair practices in the marketplace engaged in a scheme that defrauded hundreds of medallion owners, leaving many with no choice but to work day and night to pay off their overpriced medallions.’’
The state attorney general came down heavily on the city’s government and said that medallions were sold at inflated prices despite warnings having been raised internally.
The executive director of the New York Taxi Workers Alliance, Bhairavi Desai, accused the city of “deep betrayal.” Desai said that the city had not taken action against “predatory practices” and had left Uber Technologies Inc. (NYSE: UBER) and LYFT Inc. (NASDAQ: LYFT) “completely unregulated.”
Why It Matters
In the fiscal year 2014, N.Y.C. sold 350 million taxi medallions generating $359 million in revenue, according to the New York Times.
Medallion prices have fallen from the record $1.3 million per medallion in 2014, leaving drivers in debt.
A spokesperson from Mayor Bill de Blasio’s office said that the taxi crisis began under Michael R. Bloomberg, who is currently running for president, the Times reports.
In August 2018, N.Y.C decided to cap Uber and Lyft vehicles on city roads. The cap was imposed in 2018 for one year but extended again in 2019.
The limit on ride-sharing services is supported by N.Y.C. Mayor Blasio who said that he wanted to prevent app companies from taking advantage of hardworking drivers.
Price Action
Uber shares traded 0.64% lower at $40.66 in the after-hours markets on Thursday. The shares had closed 0.33% higher, at $40.92.
Lyft stock fell 0.55% and closed at $45.22 in the after-hours session on Thursday. The shares closed the regular session 1.67% lower at $45.47.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
 

tohunt4me

Well-Known Member


New York Attorney General Accuses NYC Of Taxi Fraud, Demands $810M To Be Paid To Drivers
Shivdeep Dhaliwal
BenzingaFebruary 21, 2020, 5:51 AM EST


The Attorney General of New York State, Letitia A. James, has accused New York City of fraud and demanded compensation for taxi medallion owners.
What Happened
New York City’s (N.Y.C.) Taxi and Limousine Commission sold medallions, which permit taxi drivers to ply the city’s famous yellow cabs as investments and promised steady growth to the buyers. These medallions were auctioned at extremely high prices between 2004 to 2017, the New York Times reported.
Criticizing the practice, James said, “The very government that was supposed to ensure fair practices in the marketplace engaged in a scheme that defrauded hundreds of medallion owners, leaving many with no choice but to work day and night to pay off their overpriced medallions.’’
The state attorney general came down heavily on the city’s government and said that medallions were sold at inflated prices despite warnings having been raised internally.
The executive director of the New York Taxi Workers Alliance, Bhairavi Desai, accused the city of “deep betrayal.” Desai said that the city had not taken action against “predatory practices” and had left Uber Technologies Inc. (NYSE: UBER) and LYFT Inc. (NASDAQ: LYFT) “completely unregulated.”
Why It Matters
In the fiscal year 2014, N.Y.C. sold 350 million taxi medallions generating $359 million in revenue, according to the New York Times.
Medallion prices have fallen from the record $1.3 million per medallion in 2014, leaving drivers in debt.
A spokesperson from Mayor Bill de Blasio’s office said that the taxi crisis began under Michael R. Bloomberg, who is currently running for president, the Times reports.
In August 2018, N.Y.C decided to cap Uber and Lyft vehicles on city roads. The cap was imposed in 2018 for one year but extended again in 2019.
The limit on ride-sharing services is supported by N.Y.C. Mayor Blasio who said that he wanted to prevent app companies from taking advantage of hardworking drivers.
Price Action
Uber shares traded 0.64% lower at $40.66 in the after-hours markets on Thursday. The shares had closed 0.33% higher, at $40.92.
Lyft stock fell 0.55% and closed at $45.22 in the after-hours session on Thursday. The shares closed the regular session 1.67% lower at $45.47.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
$810 MILLION
PLUS INTEREST
PLUS EXPENSES.

NEW YORK WILL PUT A HIT ON THEM BEFORE PAYING THEM !
Post automatically merged:

SHAME MOST OF THE ACTUAL MEDALLION OWNERS WERE BANKS !
 

RDWRER

Well-Known Member
The executive director of the New York Taxi Workers Alliance, Bhairavi Desai, accused the city of “deep betrayal.” Desai said that the city had not taken action against “predatory practices” and had left Uber Technologies Inc. and LYFT Inc. “completely unregulated.”
So is this supposed to be the famous “they’re a crook so we’ll be one too” defense...? 🤔
 

Cold Fusion

Well-Known Member
So is this supposed to be the famous “they’re a crook so we’ll be one too” defense...? 🤔
Is that not the logic employed by Uber drivers when stealing money
from passengers By shuffling? drivers perceive Uber cheats them, subsequently the drivers rational is to steal from uber’s paying customers
 

observer

Well-Known Member
Moderator
$810 MILLION
PLUS INTEREST
PLUS EXPENSES.

NEW YORK WILL PUT A HIT ON THEM BEFORE PAYING THEM !
Post automatically merged:

SHAME MOST OF THE ACTUAL MEDALLION OWNERS WERE BANKS !
Wait a minute, a hit on who?

The Attorney General?
 

4minus4

New Member
Illegal wages
Predatory pricing
Seems pretty cut & dry to me

Uber Lyft owe every driver a minimum $5 per ride they've ever given that should be one of many settlements after they confiscate everything & throw em in jail. But it'll never happen they'd have to take Travis ks billions & all the mansions
 

Stevie The magic Unicorn

Well-Known Member
Make no mistake, there’s a lot of medallion owners who just own one car. That used to be the taxi driver retirement plan. Spend 20-30 years paying off their medallion and selling it, buy a condo in Orlando and retire.
 

Asificarewhatyoudontthink

Well-Known Member
Is that not the logic employed by Uber drivers when stealing money
from passengers By shuffling? drivers perceive Uber cheats them, subsequently the drivers rational is to steal from uber’s paying customers
You weren't out to my car by 5 minutes... You chose to be shuffled.
You were obnoxious and abusive before I started the ride... Your choice.
You wanted me to transport your minor child... Again, you chose this behavior.

Every day I'm shuffling.
 

4minus4

New Member
You weren't out to my car by 5 minutes... You chose to be shuffled.
You were obnoxious and abusive before I started the ride... Your choice.
You wanted me to transport your minor child... Again, you chose this behavior.

Every day I'm shuffling.
It ain't stealing if you're taking money back that was stolen from you, you just reapproriatting funds lol call it a "fare adjustment" accept it's immediate not weeks later at 3am from a no reply email address like Uber likes to do lol

Just reimbursing yourself for the free labor, labor CANT agree to provide in the first place for driving 1-10+ miles just to get the details of a blank contract, after getting the details & taking 3 seconds to do due diligence & 3rd grade rhymitic I found the terms to require free labor personally I just cancel as the $4 not worth it to me but not mad at drivers that go that route I probably have less than 1 cancel fee a month when I know I could be getting em daily

Steal $1 from me it's gonna cost ya 10 though this is amerikkka when in Rome & all that jazz I won't collect a fee but that rider experience going to be degraded to the point where riders are getting cancelled on multiple times so they can't trust that 5 minutes the app says anymore gotta wait 20+ for mopes now
 
Last edited:

Another Uber Driver

Well-Known Member
Moderator
  • Thread Starter Thread Starter
  • #11
So is this supposed to be the famous “they’re a crook so we’ll be one too” defense...?
It is a quote from the article. I did not write the article.

Is that not the logic employed by Uber drivers when stealing money
from passengers By shuffling? drivers perceive Uber cheats them, subsequently the drivers rational is to steal from uber’s paying customers

.......and your complaint is______________________________________________________________________?


That is what the article reads. I did not write the article.


Make no mistake, there’s a lot of medallion owners who just own one car. That used to be the taxi driver retirement plan. Spend 20-30 years paying off their medallion and selling it, buy a condo in Orlando and retire.
In addition, you always kept out a loan against it so that it could not be taken in a legal process.


rider experience going to be degraded to the point where riders are getting cancelled on multiple times so they can't trust that 5 minutes the app says anymore gotta wait 20+ for mopes now

I do not know about your market, but this is already the case in mine.
 
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