Latest Chicago cab medallion sale shows need for relief, cabbies’ union says

The Chicago Sun-Times reports:

A union representing struggling Chicago cab drivers pointed to results of this week’s auction of taxicab medallions as proof that cabbies need relief.

Thirty-two medallions — once valued at $360,000 before the city’s two-tiered regulatory process ushered in the ride-hailing era — were auctioned Wednesday for far less, with prices ranging from $44,000 to $45,000 apiece, officials said.

The remaining 28 medallions were acquired by Capital One, the original lender on loans that had been used to purchase the medallions.

The American Federation of State, County and Municipal Employees Local 2500 — representing hundreds of cabdrivers — called the auction results a “prime example” of how city regulations governing medallions “strip drivers of due process rights” that cover “other types of foreclosure proceedings.”

“Instead of going through the regular foreclosure process which provides both parties due process, the city has set up a system where a lender can auction off one’s property out from under them,” said the union’s spokesman, David Kreisman.

“The city should fix these rules so drivers have justice and their property isn’t taken away from them until their day in court. The city needs to help protect their investment in these medallions. We enjoy due process in this country. These regulations strip people of their due process. We’re looking at this medallion crisis and they are not doing anything to provide drivers any sort of assistance.”

Even the law of diminishing returns applies to rent-seeking!