San Francisco's Yellow Cab Files For Bankruptcy (cnn.com)

Applehu Akbar writes: Yellow Cab Cooperative, the largest taxi company in San Francisco, has filed Chapter 11. While competition from those newfangled ride-sharing services is a natural target for blame, a more proximate cause is Yellow Cab losing an $8 million accident liability suit by a passenger who is now paralyzed. Apparently the Yellow Cab drivers are...registered as independent contractors. So much for the medallion cab argument that they offer superior liability coverage.

Comments

Please don't post a fucking link

[Jailbrekr]

We don't want to actually, you know, read the story anyways. We'd rather bitch about Uber or Taxis in general with no actual facts to back it up.

superior liability coverage

[Tablizer]

a more proximate cause is Yellow Cab losing a $8 million accident liability suit by a passenger who is now paralyzed......So much for the medallion cab argument that they offer superior liability coverage.

To be fair, they did cover it.

Maybe they need bankruptcy insurance :-)

The lesson is that ANY cab-like co better be ready for an 8-mil zinger.

Re:superior liability coverage

[Aighearach]

They were prepared. They waited until they had a higher than average pile of cases, and filed bankruptcy. Now they can "restructure" their debt, while maintaining business as usual.

And they even have a ride hailing app now.

The real lesson here is not to file bankruptcy frivolously. Save it for when you need it.

Re:Except Uber drivers arent registered as anythin

[guruevi]

They're still independent contractors which means it is the contractors' responsibility to register whatever they need to register. I am an independent contractor for some companies, I collect sales tax and have to report/pay income taxes, social security etc, I am responsible for my insurance and the locality's business licenses.

I could easily go ahead and collect a number of pay checks without ever reporting them as business income, ask people to pay cash or whatever but I would be responsible if the tax man or insurance man cometh.

What I liked

[rsilvergun]

was that their biggest creditor was because they couldn't weasel out of paying for a terrible wreak caused by one of their drivers. $8 mil of their $20 mil in debt is for that. I wonder if this is just the first step in folding the company and reforming it so they can skip out on paying the poor gal who got hit. This is why folks in the know hate Uber. It's all about externalizing your costs onto somebody else.Uber's doing the same damn thing but "with an App" so it's OK.

Re:How about a link to a story?

[FlyHelicopters]

Damn, though, I'm going to have to rethink my $50k policy if getting in a wreck costs me $8 million. It's not like I've got the other $7950k just laying around.

Actually, almost everyone is horribly underinsured, but for some reason, we all just accept this.

I have $300k of liability on my auto insurance and a $2 million umbrella policy that covers beyond that, for just the reasons linked here.

If I cause an accident that hurts someone that badly, $50k is just a drop in the bucket.

Re:How about a link to a story?

[Registered Coward v2]

Actually, almost everyone is horribly underinsured, but for some reason, we all just accept this.

I have $300k of liability on my auto insurance and a $2 million umbrella policy that covers beyond that, for just the reasons linked here.

If I cause an accident that hurts someone that badly, $50k is just a drop in the bucket.

My take on having an umbrella policy is not that I can over an accident as much as my insurance company is more likely to fight it than write a 50k check and then say "you're on your own..." if they are potentially on the hook for a couple of million.

Re:Fuckin faggots

[hawguy]

San Fran is full of faggots...

If only that were true -- at least San Francisco was interesting when it was a gay mecca and center of the gay pride movement and people of all races, sexual orientation and income could live there. Now it's just full of boring well paid, mostly male and white techies, which pushes out all of the old interesting businesses in favor of bars and restaurants that cater to these newcomers that serve things like $20 locally grown hand-raised artisanal organic martinis with an olive on the side flown in daily from Venus.

Re:Except Uber drivers arent registered as anythin

[houghi]

Many years ago, My dad worked for a company that had a customer that was about 95% of their business. They dropped that customer, because they were not making enough money on it.

Took them a few years to crawl back, but they managed and became a leader in their range, making a LOT more money. Afterwards it was the best decision they made, but it was by no means an easy one. Could have gone wrong and they would have been closed.

The lesson here: diversify.