With Yellow Cab filing for chapter 11 Bankruptcy Protection, one must question if we’re seeing the end of those iconic yellow speed wagons.
Coming at no shock or attention rather, San Francisco’s biggest taxi operator Yellow Cab has just filed for chapter 11 bankruptcy protection. What does that all mean however? The Yellow Cab Cooperative cited difficulties including competition from app-based ride-sharing services, namely Uber and Lyft. Coming at no surprise because in 2016, who gets in a cab willingly anymore?
The cab cooperation states that with the amount of accident-related costs and the decline in ridership, it’s not making ends meet like they used too. “In June, a jury awarded $8.1 million to a woman who was partially paralyzed in a Yellow Cab accident, court paper show, and the company said it faces some 150 open claims valued as high as $10 million.” - WSJ. But do you think that having these little yellow metal boxes driving all around the city is still a good move for the company, or for us?
We recently read an article online about the disaster of NYE Uber rides. People woke up from their blissful alcohol induced naps to a stunning charge on their mobile banking apps, what should have been a $20 dollar ride ended up being a $200 ride at the end of the evening. People were definitely turning back into their pumpkins.
One commenter stated that, “Shoutout to everyone who saw the 6x uber surge pricing last night and still forgot regular taxis exist.”
But that’s the beauty of being on the move right? No more standing in the rain as multiple dim taxi lights speed past you. No more ridiculous tip prices and being verbally assaulted for not paying their suggested rate. Call a car at the press of a button and it’ll whisk you away to your destination.
As we move into the technological, we slip away from the traditional. One commenter on WSJ had this to say, “Adapt or die.” With the constant need for upgrading and providing even quicker services, companies such as Yellow Cab, have fallen back to big banks for funding protection. CitiBank commented, “’nontraditional ride-sharing companies’ would have on the city’s traditional medallion-based business model.Lending money to taxicab companies that possess medallions has historically been a safe business, but the market has tightened as major lenders worry how the new competitors will affect the business.“
Sadly, in our defense, we only take taxi’s when our app’s aren’t responding. C’est La Vie, Yellow Cab, we will attend the funeral in time.
What are your thoughts? Are you still taking cabs because you’re “city chic?” Tell us on our FB Page.
Images sourced from CR Fashion Book and Buzzfeed.
Sources sourced from The Wall Street Journal and Buzzfeed.