Insolvency & Rescue Solutions for Taxi Companies
Taxi firms offer a required service for those unable to drive or use public transport. But the use of cabs dropped substantially during the pandemic and remains at lower levels. A number of taxi companies have recently entered administration or are being liquidated.
Here at Company Debt, we have significant experience in both closing and restructuring taxi companies. Get in touch for a free, no-obligation discussion about your situation with one of our licensed insolvency practitioners.
Taxi Pressure Points
What are the Reasons for Taxi Insolvency?
It may be hard to recruit drivers as taxi driving is more likely to be viewed as unsustainable. Even if the number of passengers using taxis increases, business owners may well find it hard to find suitable applicants – given the time it can take to pass enhanced tests to become licensed as well as safety concerns. Some drivers may also not wish to be vaccinated, even if the taxi company views this as essential.
And while drivers were able to claim the £500 Test and Trace Support Payments if required to isolate, many drivers may have subsequently decided this industry is not for them.
They will already have found their income was severely depleted – lockdown meant the closure of bars and restaurants and the fact many did not use trains, also resulted in vastly reduced need for taxis. The London Taxi Drivers’ Association said around 1,000 of its members had left their roles as their income was down to around 20% of pre-pandemic levels. One in five black cabs is said to have gone from London’s roads. It is questionable if these will return for several years to come, and if ever, since tourist numbers are well down and there has also been a big reduction in office workers since many employees remain home-based.
Taxi drivers also say that the work is becoming more difficult as town centers seek to reduce vehicle access and airports block areas where taxis can wait free of charge.
At the same time, many taxi company owners had to install safety measures within cars, such as plastic screens, introduce regular testing, and train drivers in safety procedures. Finally, traditional taxi companies have also had to invest in-app technology to compete with new entrants and lift-sharing providers that can be cheaper and appeal to a younger company base.
Help for your insolvent taxi company
If your taxi company is experiencing difficulties, you should not delay seeking advice. Business owners need to address problems and if they put this off, then their options become more limited.
Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery, or liquidation.
Knowledge – Insight – Solutions
We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.
Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.
We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.
As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.
Book My Consultation
If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.
- Your free consultation will be led by one of our experienced London insolvency practitioners
- You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
- The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
- We specialise in helping limited company directors needing immediate professional debt advice