Court Orders UberPop Use To Be Banned In All of Italy
An anonymous reader writes: A judicial court in Italy has ordered the UberPop app to cease offering its services [original source, in Italian], as it constitutes "unfair competition" again the taxi sector (taxi licenses in Italy are numbered, each can cost more than $100k to obtain). This sentence should be valid at the national level and comes after an injunction from taxi drivers in Milan, where a Universal Exhibition is incidentally bringing in thousands visitors from all over the world on a daily basis. Sources mention a judicial request to "block" the app, though no one is sure how this sentence has to be enforced and what the fines would be in case of violations.
"(taxi licenses in Italy are numbered, each can cost more than $ 100k to obtain)."
There's the problem. Piss off Italy...
In most cities, taxi drivers usually end up taking home about $25k/year after paying all of their expenses.
In cities like NYC, cab drivers make a little more, but have a $800k medallion to finance. It is not unlike financing a home where you don't plan on paying it off before you move again. When a driver wants to get out of the business they have to sell the medallion to someone else and hope they've paid off enough on it to break even. The financing tends to be rather high interest, so drivers end up mainly only covering the month to month interest and rarely makes any significant progress on the principle.
Default means a driver loses his medallion and the lender gets to sell it, the driver may still be responsible for the interest owed on the medallion even after it is sold.
Good.