Taxi Company in NYC

I was getting a ride to JFK from Manhattan last week and struck up a conversation with the cab driver about his business. He told me that his company was comprised of three drivers, including himself, and he had two cabs.

Cabs in New York need to be licensed through the City Commissions office. You need a medallion, which you have to pay for. There's also a secondary market for these medallions, because there are a limited number of medallions available. The asset value of the medallion can be very, very valuable.

So the interesting thing about this conversation is that this cabby has been offered $1.5 million for his cab business - two cars and three people. He owes about $1.2 to $1.3 million in loans on the business, so the sale isn't that interesting to him, but the real interesting thing is that a couple of licensed cabs in NYC are worth so much money!

As a side note, he says a Crown Vic will get you 300,000 to 400,000 miles per engine/drive train. Not too shabby, Ford.