With the rising popularity and convenience of mobile ride hailing services such as Uber and Lyft, taxi companies are finding it difficult to keep up. Recently, Yellow Cab Cooperative in San Francisco filed for Chapter 11 bankruptcy protection. While some may see this as a sign that the traditional cab is a thing of the past, new market competition is not the only reason for the filing.
Marketwatch pointed out that Yellow Cab was found liable for $8 million due to a wreck that left a passenger partially paralyzed. Yellow Cab tried to argue that the driver was an independent contractor, and therefore the company was not responsible. They were not successful with that argument and were found liable for the passenger’s injuries. This was not the only judgment against the company. Uber and Lyft both operate on an independent contractor model and, I’m sure, hope they are more successful than Yellow Cab in defending similar lawsuits that are sure to come.
One thing Yellow Cab can do is use their Chapter 11 case as an opportunity to update their business model in order to keep in step with the modernization of the industry. It seems they have already started this transition. Yellow Cab recently launched a mobile app called Yo Taxi. This is one good example of what debt relief has to offer many people in poor financial conditions. It gives not only the opportunity to shed the burden of unmanageable debt, but also the opportunity to start fresh and even reinvent yourself through a new job or business.
If you find yourself unable to handle your current financial obligations, are facing a foreclosure, garnishment, repossession, or other harassment from creditors, we are here to help. Please contact our office nearest you to set up a free, confidential consultation with one of our experienced attorneys.