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The SF Yellow Cab was for $810,000 to sell to the competition - by j_rodriguez - April 10, 2017
On Friday, San Francisco's biggest cab owner, Yellow Cab Co-Op, was resold to a competing cab owner for $810,000 - less than it would cost to buy a home in the city by the bay. It was purchased by Big Dog City Corporation, which operates CityWide Taxis, following a fierce tender process with Cabtopia, a Minneapolis, Minn-based cabbie.
"That was a good selling proposition for the company," said Sam Singer, a spokesperson - especially for the receiver of Yellow Cab, Randy Sugarman. The Yellow Cab's asset base amounted to $8 million, and its debt was $26 million, according to the insolvency filing, and CityWide will take over these asset bases. In January 2016, Yellow Cab filed for the first time ever for insolvency, which was first filed by the San Francisco Examiner.
Selling signaled a big hit for the cab business by rival Uber and Lyft in San Francisco, as cab business outsiders already said to the inspector. However, although tech-app-capable firms were pushing Yellow Cab over the line, they said it was a series of multimillion-dollar collision suits that drove the firm to the abyss.
All of Yellow Cab's property will not go to CityWide because Sugarman sells his cab site to foot the bill for the Yellow Cab's million in court costs, of which Ida Fua, who was in a Yellow Cab conflict, filed suit against the cooperative for $8 million. One of Yellow Cab's biggest believers, Fua, and among those whose countless clashes eventually fueled the cooperative, said cab company inside minds to the examiner.
The CityWide received the colour chart from Yellow Cab, his local known (415) 333-3333 telephone number, 160 of his taxis and subleasing to Yellow Cab's possession. A further 123 cabins are in the possession of the Ford Motor Company, which will "sell them for good" because they still owe debts, said Singer, and another 158 Yellow Cab cars will be subsequently sells.
We had some questions Friday in a northern district insolvency tribunal when CityWide would turn up as the top tenderer for Yellow Cab. The CityWide representative Big Dog opened the Yellow Cab tender at $525,000, increased Cabtopia to $565,000, and then increased each tender by $10,000 to $45,000. The Cabtopia company dropped out after Big Dog's $810,000 offer and asked to be a "backup bidder" if the sell to CityWide was not completed.
Transfers of property may be competing until April 29, according to lawyers in the Bankruptcy Tribunal Friday.