Montreal-based Teo Taxi, a company that had once aspired to take on ride-sharing services like Uber with its fleet of electric vehicles, has abruptly shut down all operations and has laid off all its drivers, The Huffington Post is reporting.
According to a union spokesman, Teo’s parent company Taxelco sent layoff notices early yesterday morning to approximately 400 of its drivers while calling a news conference later in the day. According to Stephane Lacroix, communications director for the Teamsters, drivers who showed up before their 4 a.m. shift were the first to learn the news.
Recent reports had highlighted that Taxelco was preparing to seek protection from its creditors as part of a major restructuring. However, neither Taxelco nor its shareholders had yet issued any comment.
A company notice shared with media said a reorganization had become unavoidable because of a lack of support from the company’s principal partners, and it was with regret that the drivers were being let go. Lacroix says drivers knew the company was in financial difficulty but thought there was more time to try to save it.
Teo Taxi was launched in 2015 with a mission to position Montreal as “a green, avant-garde city”, while also including Tesla models in its fleet.