The value of a New York taxi license falls – as Uber doubles its value to become one of the world’s top technology firms.
The value of a taxi operating licence in New York has fallen by $200,000 (£132,000) in a single year amid the rise of on-demand car ride apps like Uber.
To operate a famous yellow cab in the Big Apple, drivers needs a licence known as a medallion.
They are bought and sold between individuals and cab companies, but with just a limited number to go round the cost of them has continually risen, peaking at $1.05m (£690,000) last year.
The medallions now set drivers back around $805,000 (£532,000) – a fall of about 23%.
It comes amid a surge in popularity for on-demand taxi apps like Uber, in which people can hail and pay for private drivers using a smartphone app in cities across the world.
In the past six months, Uber’s value has doubled to $40bn (£26.5bn), making it one of the world’s most valuable technology companies.
It already surpasses the market capitalisation of Twitter and LinkedIn, and is closing in on Yahoo which is valued at $48bn (£32bn).
Similar apps such as Hailo are also competing for market share.
But the march of on-demand cab apps has not been without obstacles. Uber, for example, has faced legal threats as a result of its business model in countries including the US, Germany, France and India.
Decreased long-term confidence in the traditional taxi trade is also reflected by plummeting shares in Medallion Financial Corp.
The firm finances the purchases of taxi licenses in New York, but its value has fallen by 30% in the last year.
Last November black cab drivers in London protested in the streets over the regulation of rival cab services such as Uber.