Just in:
Lisboeta Macau’s world first LINE FRIENDS PRESENTS CASA DE AMIGO and BROWN & FRIENDS CAFE & BISTRO has officially opened // Arvind Kejriwal Was Used By BJP In 2011 Movement To Take On The Congress // No running of govt from jail, says Delhi Lt Governor // Superland Announced Annual Results for 2023, 2023 Net Profit Increased approximately 39.5% to approximately HK$22.2 million as Compared to the 2022 Adjusted One // Global Audience to Witness Thrill of Dubai World Cup // AI Boost for Galaxy Devices: Samsung Expands One UI 6.1 Update // US reiterates concern over Kejriwal arrest, Cong accounts // Universal Language for Healthcare: General Authority Embraces Global Coding System // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // Emirati Aid Reaches Ukraine as Food Shortages Bite // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // Emirates Post Speeds Up Deliveries for GCC with Special Day // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange // Sunshine’s Debut Features Leave Tech World Scratching Its Head // First-Ever Fortune Innovation Forum Draws Top Global Leaders to Hong Kong, Promoting Agendas On Collective Cross-Sector Advancement // Ingdan Announces 2023 Annual Results // Renewables Surge Sets Record, But Global Equity Lags //
HomeInvestingCab Industry On Verge Of Collapse? Capital One's Taxi NPL Rate Soars Above 50%

Cab Industry On Verge Of Collapse? Capital One's Taxi NPL Rate Soars Above 50%

Having abandoned its venture to lend out roughly $1 billion to legacy Taxi “Medallion” drivers and businesses some two years ago, and shifting its backing over to Uber resulting in many unhappy drivers as well as a handful of lawsuits, Capital One has nonetheless provided a useful spotlight into the troubled state of the traditional “yellow cab” industry by breaking out the details of its runoff commercial taxi medallion loan portfolio in its quarterly reports.

And according to the latest, just released report (in which COF incidentally missed both the top and the bottom line, reported EPS and revenue of $1.45 and $6.60 billion, both below expectations), the US taxicab industry must be on the verge of collapse, because in COF’s Q4 report, the company reported that while the size of its runoff Medallion “held for investment” loans tumbled by $83 million from $773MM to $690MM, it was the surge in the nonperforming loan rate that was the stunner: surging from 38.8% in Q3 to a whopping 51.5% in Q4, it suggests that legacy cab drivers in the US are not only barely making money, but are in financial dire straits.

ADVERTISEMENT

Of course, the irony is that the Medallion industry’s biggest nemesis, Uber, is likewise burning through billions in venture capital cash every year in hopes of putting its legacy competitor out of business. And, if these Capital One numbers are any indication, it may soon succeed.

Source link

ADVERTISEMENT

ADVERTISEMENT
Just in:
Emirati Aid Reaches Ukraine as Food Shortages Bite // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // Court Sides with Coinbase on Wallet Service, But Staking Program Remains in Limbo // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // Global Audience to Witness Thrill of Dubai World Cup // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young // Sharpening the Focus: Sharjah Health Department Refines Evaluation Criteria for “Healthy Schools Programme” // Ajman Celebrates Conclusion of Ramadan Activities with Grand Ceremony // First-Ever Fortune Innovation Forum Draws Top Global Leaders to Hong Kong, Promoting Agendas On Collective Cross-Sector Advancement // US reiterates concern over Kejriwal arrest, Cong accounts // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // Universal Language for Healthcare: General Authority Embraces Global Coding System // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange // Konica Minolta is named ASEAN 2023 Market Leader in Colour Light and Mid Digital Production Printers // AI Boost for Galaxy Devices: Samsung Expands One UI 6.1 Update // Andertoons by Mark Anderson for Thu, 28 Mar 2024 // Hope for Respite as UAE Endorses UN Plea for Gaza Truce // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // No running of govt from jail, says Delhi Lt Governor //