Tuesday, June 6, 2017

Is the Chicago Taxi Industry on the Verge of Collapse?

USA Today is reporting that ride-sharing companies are pushing the Chicago taxi industry to the brink of extinction.

According to the story, approximately 42 percent of Chicago's taxi fleet was idle during the month of March 2017.

Average monthly income per active medallion fell from $5,276 in January 2014 to $3,206 this year. The number of monthly street hails of taxis has fallen by more than half over the same time period to about 1.1 million monthly riders.

Moreover, foreclosures are on the rise, as taxi medallion owners cannot generate sufficient income to service their loans. In 2015, there were 59 foreclosure notices or foreclosure lawsuits initiated against medallion owners. This increased to 266 in 2016. This year, there has been more than 350 foreclosure notice or foreclosure lawsuits filed against medallion owners.

This is not good news for credit unions that are holding Chicago taxi medallion loans.

Read the story.

1 comment:

  1. Yes, it is. As is the credibility of the NCUA, what's left of it.
    As is the credibility of mcwatters, what's left of it.
    Combining the the corporate stabilization fund and the NCUSIF.
    We thought mcw was a stand up guy.



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