Task Force Recommends How To Help Taxi Medallion Owners Drowning In Debt
NEW YORK (CBSNewYork) – There are new proposals to help taxi drivers struggling to pay off thousands of dollars in debt.
A special task force has come up with recommendations to help them get back on their feet, but it oculd cost passengers more money.
Hailing a yellow cab in New York City could have you digging deeper into your pockets, with a new $600 million proposal calling on lawmakers to institute surge pricing like Uber and Lyft during high demand.
"It's tough for the passengers," said Hoboken resident Michael Baetz. "If yellow cab is surging then I probably would avoid it more."
"I guess it's one way to help them because they need to make money also, but, just don't go too, like, crazy," said Staten Island resident Sabeen Khan.
It's just one recommendation given to city, state and federal government officials in the 77-page report released Monday by the Taxi Medallion Task Force, the panel of experts, advocates and City Council members trying to save the struggling world of yellow cabs. They say the industry is in a state of crisis.
"If it goes through, it means dreams come through," said driver Mouhammadou Aliyu.
Not everyone is on board with the plan.
"I want them to get the cars off the roads, that's what I want them to do," said medallion owner Carolyn Protz. "They're concentrating on the wrong stuff."
WEB EXTRA: Read the full Taxi Medallion Task Force report
They add that with the new pricing, drivers could make more during rush hour.
People CBS2 spoke to aren't convinced.
"It's not fair for both the taxi drivers and the passengers," said cab driver Abdelfattah Aly.
"Business is very slow. The price is too much for customers," said cab driver Kamal Addgham. "It's going to make it worse for sure because people right now say it's very expensive."
The task force also suggests modernizing the industry with new and/or improved apps, allowing people to order cabs from a smartphone and share rides with such features as:
- a modernized payment process
- a medallion taxi app
- ride sharing
- surge pricing where passengers pay more during times of high demand
Councilman Steve Levin is calling for a plan in which the city chips in $200,000 in taxpayer money to resolve the issue.
"It makes it tough for the passengers," said Roy Michael Baetz. "If a yellow cab is surging then I probably would avoid it more."
Officials say immediate action is necessary to help drivers survive, many drowning in debt as they try to pay off their medallions. The values are declining with the rise of those ride-share companies.
"Yeah, it's very slow," said Addgham.
Those experts recommend the city develop a public-private entity that would buy out loans from taxi medallion owners and refinance them at market value with fair interest rates and ensure that they have free legal and financial advice.
"It's going to be good when they help them," one cab driver said.
With a number of drivers taking their lives because they couldn't pay the loan they took out to buy their medallions, i'ts obviously an emotional issue, reports CBS2's Marcia Kramer.
"Whatever we're going to call it - financial assistance, bailout - whatever we call it, it's about providing financial support to the individuals we promised it," said Councilman Ydanis Rodriguez.
There are also calls for stronger Taxi and Limousine Commission enforcement when it comes to illegal street hails.
A spokesperson for the mayor's office says the city will be reviewing the recommendations while also facing stiff budget cuts from the state.
Meanwhile, Congressman Gregory Meeks introduced a bill earlier this month that would guarantee taxi medallion owners would not be taxed for any debt forgiveness.
