A group of yellow cab backers suing the city for embracing apps like Uber are petitioning a judge to grant an emergency hearing that could freeze the bulk of the taxi-app giant’s business.
The attorneys, representing four credit unions that finance more than 5,000 yellow cab medallions, charge that the business models of Uber and other smartphone-based ride apps rely on hails that only yellow cab drivers are allowed to pick up according to the city’s charter.
In the last four weeks, the delinquencies for the loan portfolio of the Melrose Credit Union — one of the four plaintiffs — has increased 22%, said Todd Higgins, the attorney representing the credit unions.
The unions contend that app-based rides on Uber are “e-hails,” which the city defines as the strict purview of green and yellow cabs.
Representatives from the city’s Taxi & Limousine Commission declined to comment, citing the pending litigation. Uber, which is spotlighted in the text of the lawsuit but not named as a party, did not respond to a request for comment.
The value of medallions, which for decades was a better investment than gold, has dropped precipitously as app-based car services have begun capturing larger shares of the New York City market, dropping from more $1 million in 2013 to around $700,000 according to recent figures.
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