Already in the red, yellow taxis may not survive Covid blues
NEW YORK: They were omnipresent on the streets of New York day and night, as emblematic of the Big Apple as the Empire State Building or Yankees caps. But the pandemic has made yellow taxis scarce and facing an uncertain future.
On a February morning in a parking lot near La Guardia Airport, a few dozen of the yellow cabs patiently queue in the freezing cold to catch a fare from one of the terminals. “This lot used to be full with hundreds of cabs and even a line outside,” says 65-year-old Joey Olivo, recalling the days before coronavirus.
“Now there is only about 50 and you wait two hours, when before you’d wait 20 minutes,” adds Olivo, a taxi driver for three decades.
Widespread working from home, school closures and no tourists means rides have plummeted for Olivo, as they have for all of New York’s cabbies.
“It’s been pretty bad. My earnings dropped 80%. I went from making maybe $1,000 a week to making two or 300 dollars a week,” he told AFP.
Olivo, who lives in Brooklyn, is trying to put a brave face on his situation, joking that he is lucky his wife “makes good money” as a nurse, otherwise “I would have had a rope around my neck.”
‘Free fall’
New York taxi drivers, most of whom are first-generation immigrants, were once able to make $7,000 a month or more if they worked long hours seven days a week. Competition from Uber, Lyft and other vehicle-for-hire firms had already drastically dented their income, but with the pandemic it is in “free fall,” says Richard Chow, a 62-yearold taxi driver originally from Myanmar.
Chow is not feeling the press as much as most, because he bought his license, called a “medallion” in New York, for $410,000 in 2006. In the years that followed, medallion prices soared, inflated by a nexus of bankers, investors and lawyers.
In 2009, his younger brother Kenny Chow paid $750,000 for his license.
In 2014, the cost of medallion reached $1 million.
The arrival of thousands of new drivers working for Uber and others has caused the medallion bubble to burst and condemned thousands of cabbies who had bought medallions at a high cost on credit to fall into debt or bankruptcy.