San Francisco's largest Taxi firm to file for chapter

San Francisco's biggest Taxi company to file for bankruptcy

If the San Francisco Municipal Transportation Company’s phrase is not sufficient, take it instantly from taxi corporations: experience-sharing apps like Uber and Lyft are taking enterprise from conventional cab drivers. In line with a report from the San Francisco Examiner, Yellow Cab Co-op, the most important taxi firm within the metropolis, is on the verge of submitting for chapter.

Formally, the corporate advised the Examiner that its enterprise is “wholesome,” however a letter circulated by the group amongst its members paints a extra dire image. “We’re within the midst of great monetary setbacks,” the textual content reportedly reads, “…as a consequence of enterprise challenges past our management and others which might be of our personal making.” In response to the paper’s business sources, fierce competitors from Uber and Lyft are among the many challenges.

The cab firm’s woes aren’t all competitors based mostly, nevertheless — former Yellow Cab president Jim Gillespie informed Examiner that a lot of the bills are coming from legal responsibility lawsuits, a few of which have ordered the corporate to pay out quantities larger than one million dollars per case. Both approach, the corporate says it has already began submitting for chapter eleven chapter, however has no plans to shut after restructuring.

[Image credit: Getty Images]

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