The competition is as fierce as ever in the for-hire transportation industry, as Uber and Lyft continue to put pressure on traditional taxi companies.
On Tuesday, San Francisco's largest taxi operator, Yellow Cab Cooperative, is scheduled to have its first bankruptcy hearing after the company filed for Chapter 11 protection Friday. The operator has been struggling with declining ridership and increased competition from the two big for-hire driver start-ups.
While Uber and Lyft may have contributed to increased competition for the cab cooperative, the start-ups were not the sole cause of the filing, according to the cooperative's bankruptcy attorney, Gary M. Kaplan.
"It's a business reality, there is competition there," Kaplan told CNBC. "But it's incorrect to make it sound as if this is the result of Uber and Lyft. The company operationally does fine and is still operational," he said. "It does not want to lose drivers and passengers to the competition; it wants to operate business as usual."
At the core of the bankruptcy were pending lawsuits and a recent verdict of $8 million in court, Kaplan said. The company was not covered as it was "self-insured," he added.
Uber declined to comment, and representatives from Lyft were not immediately available for comment on the Yellow Cab Cooperative's bankruptcy filing.