New York City began selling medallions in 1937 — for a scant $10 apiece. What had once been the wild west in terms of cabbies had come under control and now was regulated. Drivers were able to earn a good living and the values began to increase. The value had hit “$1.3 million in 2014 with no ceiling in sight”. Drivers saw continuous returns and could easily get banks to finance loans for the purchase of additional medallions.
With the appearance of Uber and Lyft drivers in the city, the demand for taxi drivers has quickly fallen. Banks are no longer willing to back loans for the purchase of medallions — it’s just too risky. This makes unloading them very difficult. Cabbies who are struggling under the weight of their tremendous medallion payments have taken the city to task, filing lawsuits.