Credit unions failing in NYC due to Uber and Lyft.

[credithunting]

The New York State Department of Financial Services took possession of the $178 million Montauk Credit Union in New York City Friday 9/18/2015 and appointed the NCUA as conservator, according to a prepared statement.

 

Montauk CU, one of the four New York cooperatives that serves the taxi medallion industry, posted a net income loss of $2 million at the end of the second quarter of 2015, according to NCUA financial performance reports. At the end of the second quarter of 2014, the credit union showed a net income gain of $1.6 million. In addition to Montauk CU, three other New York-based credit unions – the $271 million, 3,000-member LOMTO Federal Credit Union in Woodside; the $2.1 billion, 24,000-member Melrose Credit Union in Briarwood and the $692 million, 3,800-member Progressive Credit Union in New York City – have seen their income decrease and provisions for loan losses increase in 2015 as the transportation industry they serve has struggled to survive economic and technological changes...http://www.cutimes.com/2015/09/18/montauk-credit-union-conserved

[virtualtreasure]

Didn't anticipate a crushing Uber impact in NYC just yet, since it tends to be more expensive (for trips <$35) and not necessarily more convenient than yellow cabs.

Edited September 22, 2015 by virtualtreasure

[Tileguy61]

Seems it isn't Uber as much as the crushing price of the Medallion. IIRC the price was around $500 k a few years ago. Now it's $1.3M.

[mizliz1011]

the $5 black car services such as Via, Lyft, and Gett are crushing the cab business. You walk a block or get dropped off a block away and sometimes you pick up or have other people in the car but it is a fixed price for long rides within certain limits and the cards are super plush large SUV's ...

 

I have not taken a cab since I got hooked onto these other services. Uber was getting a rep for overcharging on premium hours so I don't do much Uber in NYC.

 

All in all, the yellow cabs are in deep doo doo in my opinion.

[Konrad2012]

Adapt or die...

[TheVig]

Free market principles at play.

 

A friend who was from NYC likes Uber and Lyft. Says its nice to have a driver that speaks intelligible English.

[TrevorHere]

There's room in the playing field for all. Competition is always good for the consumer.

[GoneGrl]

Free market principles at play.

 

A friend who was from NYC likes Uber and Lyft. Says its nice to have a driver that speaks intelligible English.

 

Wow, that sounds sorta racist to me.

[CTSoxFan]

 

Free market principles at play.

 

A friend who was from NYC likes Uber and Lyft. Says its nice to have a driver that speaks intelligible English.

 

Wow, that sounds sorta racist to me.

 

 

Stereotypical, maybe. Racist, no.

[PhoenixDown]

As a NY'er I read a lot of articles about how Uber and Lyft are killing the yellow cab business but I am wondering how much of the business is coming from private car companies vs yellow cabs or even the newer "green cabs" which are intended for pick up in the other boroughs and upper manhattan only.

 

I wonder how much financing Montauk Credit Union and the other CU's provided to Green Cabs and whether the defaults on those loans are higher than Yellow Cabs.

 

The green cabs are very new and work the same way yellow cabs do where the owner has to buy a medallion. This was done to help increase cab availability in the other boroughs outside of Manhattan because private cars technically are not allowed to pick up a street hail. While I think the green cabs will help cut down on some shenanigans with uninsured drivers, etc, I think its mostly to keep a better accounting of how much money they are really taking in come tax time since they will not have meters to go by.

[virtualtreasure]

the $5 black car services such as Via, Lyft, and Gett are crushing the cab business. You walk a block or get dropped off a block away and sometimes you pick up or have other people in the car but it is a fixed price for long rides within certain limits and the cards are super plush large SUV's ...

 

I have not taken a cab since I got hooked onto these other services. Uber was getting a rep for overcharging on premium hours so I don't do much Uber in NYC.

 

All in all, the yellow cabs are in deep doo doo in my opinion.

Not sure what 5$ black car service is but it costs almost that just to open the door of an ole yeller, so if it gets me more than a few blocks, that's a score.

Gett, Lyft and Uber all garnered rather abysmal yelps