San Francisco's Yellow Cab service has filed for bankruptcy, citing causes such as competition from Uber and Lyft.
For taxi services, adapting to user demands has become a point of survival to compete with the likes of rideshare apps such as Uber and Lyft. In the case of the San Francisco Yellow Cab, this has caused the company to file for bankruptcy. "We are in the midst of serious financial setbacks," explained the Yellow Cab Cooperative in a statement published by the San Francisco Examiner, "some are due to business challenges beyond our control and others are of our own making." The self-inflicted challenges mentioned in the statement refer to a dwindling number of drivers. But for Yellow Cab and companies like it, there are still advantages that they can hold over the likes of Uber and Lyft, most being the benefits received by drivers.
Whereas rideshare programs generally treat their drivers as independent contractors, companies like Yellow Cab can offer attractive security, benefits, and more. Among the many legal snags with which rideshare companies are dealing, driver compensation, unionization, and insurance are just some of the many. But from a market standpoint, these companies continue to flourish because they fill a user need. Therefore, even though the company is always encountering regulatory hurdles, Uber nonetheless celebrated its billionth ride over the holiday season. But it is not necessarily all over for local taxi companies. "We need to have not just more drivers," continued Yellow Cab, "but drivers who are happy to be behind the wheel of a Yellow cab because we offer the best opportunity to make a living in a cab."
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