WASHINGTON—While some taxi-medallion CUs have indicated there will be no long-term negative impact on the value of taxi medallions as a result of companies such as Uber, one cab driver here is not so sure.
Fawzi Abrough predicts that someday virtually all of the drivers in this city will be working for Uber.
“I don’t think this situation will pass,” said Abrough, who owns and drives his own taxi in the D.C. area. “The way I see Uber expanding here, and how I see Uber and Lyft expanding city to city, I regret that things won’t get better.”
Abrough said many of his fellow taxi drivers—those who drive for companies and other cab owners—are jumping to Uber as their incomes fall sharply.
Airport Business A Lifeline
“Pretty soon it may be all Uber drivers here,” said Abrough, who noted that one remaining market advantage is that Uber has yet to gain a foothold at D.C. airports, with the Airport Authority blocking the company’s request for airport permits.
“For me, right now, I am still OK, because I have the airport business, that is the area I work. But business for taxi drivers is not good in many other areas of D.C.”
Abrough, too, does not think falling medallion values will either level off or come back. He told CUToday.info that a friend who bought a medallion in Alexandria, Va., three years ago for $60,000 can’t get $25,000 for it today. “He just wants to get out, and he can’t.”
Abrough said drivers in Virginia, where they are allowed to rent cars from cab companies, are leaving in droves for Uber. “Their income is dropping so much that it’s much better for them not to rent and drive their own cars for Uber.”
Playing Field Not Level
Arturo Velazquez owns his own limousine and does not like how easy it is for someone to buy a new car and then drive for Uber. He says the playing field is not level.
“I pay for insurance, $300 dollars a month, I have to have a license, it is not fair,” pointed out Velazquez, who drives in the Washington area.
He also said the money cab drivers make today has dropped sharply from a year ago.
“We used to make $400 to $500 a day, now it’s $150—and you have to work all day to get that. We just don’t get the calls for rides like we used to. Cab drivers today, we’re crying it’s so bad.”