The nation’s capital is home to a bustling taxicab business — some 7,300
licensed cabs. That works out to 12 cabs for every 1,000 people — a
mighty favorable ratio compared to Chicago’s 2.4 or New York’s 1.6. As a
result, D.C. has some of the lowest fares of any major U.S. city,
according to a recent survey by the trade publication Chicago
Dispatcher.
But not much longer. The D.C. city council appears on
the verge of throttling this vibrant competition and twisting it into a
government-enforced cartel, by introducing an abomination known as taxi
medallions.
Want to drive a cab in the capital? You gotta get a
medallion — a very special kind of license — affixed to the hood.
They’ve been the law for decades in New York, Chicago and elsewhere.
These days in New York, a medallion costs $700,000. In Boston, $400,000.
Since
D.C. plans to issue only 4,000 medallions under this proposal, 3,300
cabs would presumably be mothballed. What’s more, the system’s been
rigged so that established companies will pay only $250 for their first
medallions. Newer operators will have to fork over up to $10,000.
The Small Business Association of D.C. Taxicab Drivers figures about four out of 10 D.C. cabbies will be thrown out of work.
If
you’re planning a trip to the nation’s capital, make it soon. Getting
around once you get there is about to cost a whole lot more.
— Addison Wiggin
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