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Lawsuit in SF blames city for letting Lyft, Uber thrive, and depressing the value of the taxi medallion

SAN FRANCISCO, CA - JANUARY 21:  A Cable Car passes a line of taxicabs as they wait for fares in front of the St. Francis Hotel on January 21, 2014 in San Francisco, California. As ridesharing services like Lyft, Uber and Sidecar become more popular, the San Francisco Cab Driver Association is reporting that nearly one third of San Francisco's licensed taxi drivers have stopped driving taxis and have started to drive for the ridesharing services.  (Photo by Justin Sullivan/Getty Images)
Justin Sullivan/Getty Images
A Cable Car passes a line of taxicabs as they wait for fares in front of the St. Francis Hotel on January 21, 2014 in San Francisco, California.

The San Francisco Federal Credit Union is suing the State’s Municipal Transportation Agency (SFMTA) alleging the transit agency is responsible for the downfall of the taxi market.

The San Francisco Federal Credit Union is suing the State’s Municipal Transportation Agency (SFMTA) alleging the transit agency is responsible for the downfall of the taxi market.

The credit union made loans to taxi drivers to buy medallions that cost $250,000 each; now the suit alleges that taxi medallions have decreased in value because of Uber and Lyft operations. The lawsuit seeks $28 million in damages and wants the SFMTA to pay millions to repurchase all the medallions.

Guest:

Carolyn Said, San Francisco Chronicle reporter covering business, tech and the on-demand economy; she tweets

and has been covering the story

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