With the news that Uber is now valued at $18 billion, it got me thinking about the taxicab market. I think, over time, Uber is going to do some serious damage to the wonderful world of yellow cabs. As some of you already know, the prices for the medallions that permit taxis to be used in the first place have absolutely skyrocketed:
Uber, though, is a classic disruptive game-changer. I was trying to think of how to exploit this, and a reader of mine clued me into symbol TAXI, shown below. Apparently their business is based on loaning out money for people to buy the aforementioned medallions. Something tells me that is going to be a very at-risk business in the years ahead. I’ve shorted it.
