Business

Financial Backers Of Yellow Taxis Want Emergency Hearing To Block Bulk Of Uber’s Business

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Guy Bentley Research Associate, Reason Foundation

Four credit unions with strong financial interests in New York City’s yellow taxis are petitioning a judge for an emergency hearing that could result in the bulk of Uber’s business being blocked.

Uber’s stunning success in New York is hitting the fares of yellow cab drivers, which in turn impacts the credit unions who have loaned money to the taxi drivers.

These four credit unions hold stake in more than 5,000 medallions, the value of which has dropped by 30 percent since 2013, reports The New York Daily News. The Melrose Credit Union, one of the four on the petition, has seen delinquencies rise 22 percent in the last four weeks.

The other groups involved in the action are Montauk Credit Union, Progressive Credit Union and LOMTO Federal Credit Union.

The petition is only the latest escalation of the credit unions war in Uber. In May, the same group filed an injunction against the City government to enforce regulations that restrict street hails to yellow and green cabs. The plaintiffs argue Uber should be in the category of private hire vehicle that can only pick up pre-arranged passengers. They claim that Uber, as it’s currently operating, is more akin to street hail service.

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