Cab companies have struggled to compete with ride-sharing apps like Uber and Lyft, and some taxi businesses are starting to file for Chapter 11 bankruptcy. Yellow Cab was the most recent cab company to file for bankruptcy. Could there be more cases on the horizon? There are several reasons why cab companies are struggling to compete, and why future bankruptcies might become a reality. Ride-sharing apps are easier to use: The method for finding new business is very easy for ride-sharing companies. Instead of calling or looking for cabs, passengers just install an app and hit a request pickup button. Competition for workers: Cab companies are losing drivers to ride-sharing apps. Drivers for ride-sharing apps can set their own hours and potentially make more money. Employees for Uber and Lyft can also use their own vehicles. There are more ride-sharing drivers: Ride-sharing drivers significantly outnumber cabbies in most major cities….
Read More »
Posted in Bankruptcy