Cabbies Raise the Heat for Debt Relief

By SHANEL THOMPSON

A group of embattled yellow cab drivers blocked traffic on Thursday in a continuing campaign to demand debt relief from City Hall.

The protesting cabbies  took to the streets again in a caravan from City Hall to Times Square making stops at headquarters of the debt holders Penford Credit Union, Medallion Financial
and S&R Medallion, blaring horns along the way.

The drivers could be seen holding umbrellas and banners with the printed words, “Debt forgiveness NOW! Let drivers LIVE.” They also shouted,  “No more suicide!,
No more bankruptcies!” — events that have occurred often in the world of cab drivers, who are predominantly immigrants.  Their stories have dominated many news cycles.

The pandemic and, before that, the popularity of ride-sharing apps did not help matters.

In 2018, Doug Schifter, a 61-year-old limousine driver committed suicide after posting a note on Facebook : “I worked 100-120 consecutive hours almost every week
for the past 14-plus years. When the industry started in 1981, I averaged 40-50 hours. I cannot survive any longer with 120 hours! This is SLAVERY NOW. … I don’t know how else to try to make a difference other than a public display of a most private affair.”

In July, the Taxi and Limousine Commission released a report showing that taxi ridership had collapsed  92 percent in June with just 20 percent of the city’s 13,500 yellow taxis still in operation – meaning 80 percent of yellow taxi drivers weren’t able to work at all that month.

According to the report, average gross incomes for yellow cab drivers declined by 70 percent between February and April, and as of the end of July were
still 43 percent less than a year ago.

In previous years, when the industry was booming, drivers borrowed heavily to buy medallions, city licenses to drive as owner-operators. Yellow taxis
had a government-enforced monopoly in the Manhattan market until almost a decade ago, and the price of medallions soared as they were promoted by the city as an investment that would help finance home mortgages, retirement plans and college education for children.

The medallion market took a big hit in the form of competition from newer and much larger companies such as Lyft and Uber and the taxi business was at
a standstill with the onset of COVID-19.

“During the October 16th city council public hearing, the TLC (Taxi & Limousine Commission) Chair called lenders ‘partners’ and described Marblegate’s enriching offer of $300,000 a ‘resolution’,” said taxi union leader Bhairavi Desai. æThe demands of owner-drivers who have been protesting, shutting down bridges, holding motorcades, fighting for their lives were not even mentioned. It’s been made abundantly clear by the Mayor and the TLC that they would love for us to just go away, stop the protesting and agree to Marblegate so to not disturb the cozy partnership.”

The New York Taxi Workers Association in a press release, issued a proposal, “ Our Proposal would help to rebuild the industry and keep drivers whole.
We propose to restructure medallion debt to $125,000 and refinance at no more than 20 at $757 per month ( 4% interest rate).”

“ City Hall just doesn’t get it,” Desai added. “Without this debt restructuring, there will be massive foreclosures and bankruptcies and the yellow cab industry will collapse. Thousands will lose their jobs, their homes, their life investment.”