Barwood Taxi Service Files Chapter 11 Bankruptcy Due to Losses from Uber and Lyft Competition

by San Antonio Attorney

The biggest taxi business in Montgomery County has declared bankruptcy, blaming tough competition with Lyft and Uber as the major cause of its financial losses.

Barwood Taxi Service, which is based in Kensington, Maryland, is a 56-year old company.

Barnwod CEO Lee Barnes said his father was a taxi driver and he rode with him when he was still very young.

Things are very different now. Barnes said the new technology that allow passengers to order a car service  thorough a mobile phone app has made it hard for conventional cab companies such as Barnwod to keep their business going.

Barnes pointed out the imbalances on fares, driving licensing, entering the market and criminal background checks.

He also said ride-booking companies are not subject to the same rules as regular cab companies, allowing Lyft and Uber to have cheaper rates.

Barnes filed for Chapter 11 bankruptcy so that the company can work out a new business model.

Its plan also includes repainting the Barwood’s cabs in black and using tablets as a new way of paying fares.

He said the new method is quick and affordable, and there’s no need to use credit card.

According to Barnes, he is hoping the changes are going to help keep his company around.

Last year, one of San Francisco’s Yellow Cab, which used to operate 520 taxis, filed for Chapter 11 bankruptcy due to competition against Lyft and Uber.

According to some experts in the industry, traditional taxi companies are threatened by the new competitors, and they can see more taxi operators closing as a result.

Filing for bankruptcy is usually the last resort to eliminate your debt.  Contact a San Antonio Bankruptcy lawyer for help if you’re overwhelmed with debt and need a financial fresh start.

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