Uber and Lyft precipitate the crisis of the taxis in San Francisco

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Photo: andreavallejos (Flickr) CC BY ND

In the californian city it is legal to practice as a driver for Uber or Lyft, without having the license of taxi driver, as it is regulated separately. Local legislation supports the operation of companies of transport networks (TNC). taxi drivers in traditional have seen a huge drop in their income, in 2013 was a collapse of 50%.

The San Francisco Examiner has leaked a letter dated 10 December, in which the company’s president, Pamela Martinez, warns that they are going to ask the protection of the “Chapter 11”. Is that in our country we know as suspension of payments, the company stops to pay some debts to reorganize and not to break.

opponents of the technology companies are not only removing racing to the taxi drivers, also are taking some of their drivers. Yellow Cab are working 530 drivers license, while Uber and Lyft put on the streets thousands of cars every day. By the way, the price of these licenses is going down strongly. No longer are synonymous with safe investment.

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Photo: torbakhopper (Flickr) CC BY ND

Not only that, drivers who work for Uber and Lift have a lot more flexibility, literally work when they want, and casting the same hours, earn more money with these new competitors. In 2013 alone it is estimated that one-third of the taxi drivers of San Francisco changed their “side”, according to the association of taxi drivers local (SFCDA).

Part of the problem of Yellow Cab come from the compensation they have demanded the courts for civil responsibility, for example to compensate their passengers after an accident. From October let to pay dividends to the 300 partners, as Yellow Cab is a cooperative.

on the other hand, the guild has a fame accumulated very negative, which is not the case in technology companies. The rated drivers, the black sheep are quickly driven out of the system, which does not happen in a traditional taxi. However, Yellow Cab has redesigned its mobile application, in order to make it more attractive.

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Photo: faungg’s photos (Flickr) CC BY ND

Another factor to keep in mind is that the licensing of taxis allowed to San Francisco have been limited to 1,500, despite the increase in population that has taken the city. At the end of last year the limit was increased to 2,100 licenses, so that more people could get to exploit the service of a taxi, in a city where it is not so easy to find taxis on the street.

Yellow Cab intends to continue to operate as normal and reorganized, for which you will have to do more with less, and be more profitable. It is possible to get out of a corporate restructuring, but also is a situation very close to bankruptcy. it is not Yet the end of the taxi conventional in San Francisco.

it is Not known at what date will request the suspension of payments, but the letter indicated that it would be in a month, and we are on day 8 of January. You can be with nature imminent, next week.