Cost of a taxi license in new york

The cost of a taxi license in New York City is a significant investment. Here's a breakdown of the costs involved:

Medallion Cost:

• The cost of a yellow cab medallion, which is required to operate a taxi in NYC, can range from $1 million to $3 million or more, depending on the location and the seller.
• In 2020, the average price of a medallion was around $1.5 million.
• The cost of a medallion is typically financed through a loan, and the annual interest rate can range from 6% to 12%.

Other Costs:

• In addition to the medallion cost, there are other expenses associated with owning a taxi in NYC, including:
  • Vehicle purchase or lease: $50,000 to $100,000 or more, depending on the type and condition of the vehicle.
  • Insurance: $5,000 to $10,000 per year, depending on the coverage and the driver's record.
  • Fuel and maintenance: $5,000 to $10,000 per year, depending on the vehicle's usage and condition.
  • Tolls and parking: $2,000 to $5,000 per year, depending on the driver's route and parking habits.
  • Driver salary and benefits: $30,000 to $50,000 per year, depending on the driver's experience and the number of hours worked.

Total Cost:

• The total cost of owning a taxi in NYC, including the medallion cost, can range from $2 million to $5 million or more, depending on the location, vehicle, and other expenses.
• The annual operating costs of a taxi in NYC can range from $100,000 to $200,000 or more, depending on the expenses mentioned above.

Alternative Options:

• For those who cannot afford the high cost of a medallion, there are alternative options, such as:
  • Ride-hailing services like Uber and Lyft, which do not require a medallion.
  • Car service companies, which may offer a lower-cost option for passengers.
  • Black car services, which may offer a higher-end option for passengers.

It's worth noting that the cost of a taxi license in NYC has been a topic of controversy in recent years, with many arguing that the high cost of medallions has led to a lack of competition and higher prices for passengers. In 2019, the New York City Council passed a bill aimed at reducing the cost of medallions and increasing competition in the taxi industry.