Other medallion lenders that have acknowledged being blindsided by the rapid rise of San Francisco-based Uber in New York City include Valley National Bank of Wayne, which said it is “closely monitoring” a $159 million portfolio of medallion loans; New York City-based Signature Bank, which added $2.4 million to its loan-loss reserve in the third quarter, partly due to concerns about its $600 million medallion loan portfolio; and Citibank, which is suing a New York City taxi mogul over alleged defaults on medallion loans.
This is from “Uber rise blindsides lenders” by Richard Newman in NorthJersey.com.
This of course is due to Uber’s defeat of occupational licensing, not autonomous vehicles. But I think these lenders are an interesting example of the first- and second-derivative business that collapse when an industry gets disrupted.
What will the autonomous vehicle corollaries be? Auto insurance? Auto lending? Auto repair? Fast food might be an interesting example, if autonomous driving changes the cost/benefit economics of drive-through windows.
Originally published at www.davidincalifornia.com on December 6, 2015.
David Silver 