The problem is that once the medallions were created, they represent a property right, and the Fifth Amendment Taking Clause prevents the government from eliminating them without compensation. And, it's hard to see the argument for spending $16 B to do so.
On the positive front, once Uber switches to robot drivers in the next decade, yellow taxis will probably go away forever, and the medallion system can be eliminated.
Then, the city can be compensated via congestion pricing for the traffic that on-demand cars generate.
I highly recommend checking out Move NY for the most credible congestion pricing plan under consideration: http://iheartmoveny.org/
On the positive front, once Uber switches to robot drivers in the next decade, yellow taxis will probably go away forever, and the medallion system can be eliminated.
Then, the city can be compensated via congestion pricing for the traffic that on-demand cars generate.
I highly recommend checking out Move NY for the most credible congestion pricing plan under consideration: http://iheartmoveny.org/