What Does a Recovering Medallion Market Mean for Uber's Sometime IPO?

Signature Bank (NASDAQ: SBNY) sold 18 medallions in July at higher prices than in 2Q16. In mid July, SBNY auctioned off 16 NYC taxi medallions. There were multiple bidders and the winning bidder bought all 16 for $625K each. These metrics compare favorably to 2Q, when there were 12 medallions sold industry wide at an average price of $538K. SBNY sold 3 of those at an average price of $595K. The stronger pricing, despite the increase in supply, is a positive reflection of the return of willing buyers to the market.

It's unclear whether this is a positive or negative for Uber which is richly valued at $40 billion with a management team that seems to want a higher valuation before coming public. On one hand, this could indicate a strengthening market. On the other hand, it could indicate a loss of marketshare as drivers realize they are making less than minimum wage.

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