Mr. Engels,

Very informative! You're saying that the lease cap exists and is proper because the cities limit the number of taxi licenses through the medallion system.

What about places where there are no medallions or restrictions on the number of taxicab licenses. Are you saying the lease cap shouldn't exist in those places?

Salim

Salim wrote, "What about places where there are no medallions or restrictions on the number of taxicab licenses. Are you saying the lease cap shouldn't exist in those places?"

Yes! That's exactly what I'm saying. In a non-medallion system in which there is no limit to the number of taxicab licenses, if there are more drivers than cabs, a driver won't have to simply bid up the price to lease a cab to the point where he'll make no money. At some point, he'll simply go apply for a license himself and become an owner.

Carl Engels
Chicago Dispatcher

You are saying that in a system where the cab license are not limited somebody has to just go apply for a license.

But in a medallion system somebody just has to buy medallion.

Rohit:

I think the point Carl is making is that if there are more drivers than taxicabs, the drivers will not make any money if the number of cabs is limited, e.g. a medallion system.

So even though you can buy a medallion, that doesn't change the fact that the driver will still be left with nothing.

No lease cap is right!!!!!!

This is America. THe market should decide. If drivers don't want to pay they can go somewhere else.