Taxi Cab Company in Atlanta, GA Metro Area for Sale

Price: $625,000

Location: Atlanta, GA

Industry: Taxi Cab Services

Listing ID: Atlanta Taxi Cab

Listing Details

EBIT: $417,000

Reason For Sale:

Seller is pursuing other business opportunities in another metro area.

Training & Support:

Seller will support transition as per agreement with Buyer.

Operation

Year Established: 1969

Days & Hours of Operation: 24 x 7

Employees: 35

Managers: 2

Absentee Owner?: Yes

Location

Relocatable?: Yes

Facilities Information:

Well configured to support this business.

Summary

Historical Summary:

40 car Taxi Cab Company servicing the Atlanta, GA Metro growing area is available for sale. It is well-situated and convenient for its drivers (who lease the cabs they drive on a weekly basis at a customary rate) and its long-term loyal customers. This is a business that services its customers on a 24×7 basis. It is well equipped with relatively new cars and and well staffed with mechanics, a manager and dispatchers. Therefore, it could be a compatible acquisition from a regional purchaser who wants to expand their presence in Atlanta, GA.
Estimated Pre-Tax Earnings net of used vehicle purchases about $417,000.
Asking Price: $625,000.
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DISCLAIMER: Enterprise Development Resources, Inc.(EDR) makes no warranty or representation in connection with the information provided herein. Interested parties are required to conduct their own due diligence.
EDR is not a Broker/Dealer. Elias E. Ladon of EDR is a Registered Representative and any Securities Transactions will be conducted via a Broker/Dealer.For More Information please contact: Elias E. Ladon, Investment Banking Representative, Certified Business Broker & Appraiser, Enterprise Development Resources, Inc.
elias.ladon@EnterpriseDR.com;
216-295-1136 (m); 216-803-0107 (f); 216-765-0845 (O)

Owner Qualifications:

The proper buyer for this business is an experience operator in the Taxi Cab business because the industry is going though a transition which is being discussed in this presentation.

Competition:

This is a competitive business and in the recent years Taxi companies have experienced some competitive pressure form UBER and Lynx. On the other hand, a study suggests that lower taxi cab rates have helped expanded the market for taxis. Also, reportedly, people tend to use Uber/Lynx for transportation during off peak hours when they cannot find conventional taxis as easily. It remains to be see how the industry will evolve. However, in the process, the conventional Taxi Companies are bound to draw some valuable lessors and eventually compete more effectively with the new competition from UBER/Lynx.

Potential Growth:

In view of the adverse impact of UBER and LYFT on the industry, the question now is what will stop UBER and LYFT from prevailing. The following passage is from Kate Gathii’s article of February, 6, 2017:
…”Will Uber prevail?
Possibly, but not necessarily.

Uber’s current business model has them subsidizing fares, thereby enabling the lower rates to passengers, yet worthwhile payments to the drivers. These subsidies are largely the reason why Uber is losing money today, despite the uptake in ride volume. Uber finished 2015 with a loss of $2 billion, and a cumulative $4 billion in loss since inception. At some point, something is going to have to give, and Uber will need to make changes and move towards a profit-generating business model.

In order to compete, taxi companies need to take a lesson from the Uber playbook and improve their service levels, institute app-backed hiring options, and offer alternatives to cash payments such as mobile payments methods. By improving efficiencies and catering to what today’s market demands, taxi cabs will be positioned to win back market share.”

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