Page 41 - drive a2b march 2020 web

New York

ordered to pay

$810 million to

debt-hit taxi
drivers

from MSN News

New York must pay US$810 million at auction to spike from US$283,300 the marketplace engaged in a scheme
(AU$1,229 million) to its debt-ridden (AU$430,021) in 2004 to US$965,000 that defrauded hundreds of medallion
cabbies, the state attorney general (AU$1.46 million) in 2014. owners, leaving many with no choice
said last month, accusing the city of but to work day and night to pay off their
fraudulently inflating the value of permits The city allowed brokers and top players overpriced medallions."
needed to drive its famed yellow taxis. to collude on prices, the prosecutor said,
as the TLC encouraged drivers to use the New York's taxi industry has been
Letitia James, head prosecutor for the medallions as collateral for loans. upended by the arrival of ride-hailing
state of New York, said an investigation platforms like Uber and Lyft.
by her office showed that the auction The state's prosecutor said medallion
price of thousands of permits, known as prices were fraudulently set so high that More than 950 licensed taxi drivers have
medallions, had been artificially inflated drivers could not pay them off with their declared personal bankruptcy since
by hundreds of millions of dollars earnings from cab operation regulated 2016, according to a New York Times
between 2004 and 2017. by the city itself. investigation of court records published
last year. Recent years have also seen
The attorney general's office alleged that "These taxi medallions were marketed as a spate of suicides from cab drivers
the Taxi and Limousine Commission a pathway to the American Dream, but suffering under crushing debt.
knew in 2011 that the price of medallions instead became a trapdoor of despair
had passed actual value. for medallion owners harmed by the The sum of US$810 million (AU$1,229
TLC's unlawful practices," James said in million) corresponds to the city's
Yet the administrative body "published a statement. revenues from medallion sales and
false and misleading medallion prices" resale tax, according to the attorney
in a number of cases, James' office said, "The very government that was general, and must be paid within 30 days
causing the price of a single medallion supposed to ensure fair practices in or James' office intends to sue, it said.

Uber closes In a recording The Times obtained, this is a shock. This meeting is to
Uber manager Ruffin Chevaleau
inform you all that today is the last day
LA office acknowledged that the meeting was in this office.”
called on short notice before delivering
the news. The employees were mostly customer
by Johana Bhuiyan | Los Angeles Times support staffers who were paid hourly
“We have decided to close the and focused on driver outreach, with
Uber has closed a customer support downtown L.A. office and we will be tasks such as processing documents,
office in downtown Los Angeles, laying moving the outreach and innovation resolving account issues and
off about 80 employees. work to our Manila C.O.E., where explaining incentives and promotions.
we can continue to support the
Without advance notice, staffers were business as it grows,” she said, using (Uber considers both drivers and riders
its “customers” and supports them out
informed last month that their jobs would an abbreviation that means Center of the same department).
be shifted to a large customer support of Excellence, the in-house term for
office the company maintains in Manila. customer support hubs. “I know that
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