Istanbul’s cabs hit by liquidity crunch
Güncelleme Tarihi:
by Esengül Metin - Milliyet
Oluşturulma Tarihi: Nisan 27, 2009 00:00
ISTANBUL - Cabs working in Istanbul’s business districts such as Maslak and Mecidiyeköy have begun to provide services on credit.
With the global economic crisis sinking its teeth deep into Turkey’s economy and distress caused by a liquidity shortage, many companies and their employees have decided it would be better to open accounts with their local cab companies. That has enabled employees to run a tab and make payments to the cab firm every 20 days to a month, instead of paying at the end of each ride. Meanwhile, the balance receivables of some cab drivers reach 10,000 Turkish Liras.
"This is the first time cab drivers provide transportation on credit," said Semih Kaçanoğlu, chairman of the Istanbul Chamber of Taxi Drivers. "Many cab companies, especially the ones located in Istanbul’s business districts such as Maslak, Mecidiyeköy and Levent, have begun to open accounts for local businesses. Sometimes their debts reach 400 liras to 500 liras per person. The payments are received monthly."
However, some cab companies have been struggling to obtain the money they have rightfully earned from the companies, said Kaçanoğlu. "Many cab customers have also been choosing to travel by minibuses. Half of some 18,000 cabs operating in Istanbul are waiting at the cab stops, as there is no business. Those who manage to find work are unable to receive money due to cash shortage, which buries them deeper in debt."
On the other hand, the crisis has turned out to be quite beneficial for pirate cabs. Their number is increasing rapidly as well, warned Kaçanoğlu. "The government should take necessary precautions to help get cap companies out of debt," he said, also requesting that taxi fares should be increased.
"I am keeping 16 books. My balance receivables have reached 7,500 liras," said Osman Yıldırım, the head of a taxi stop in Maslak Çarşı. "Many employees use cabs in their daily run around, or when they are pulling a night shift. Some customers are unable to write off cab fares to their companies, others receive the money for the ride but spend it somewhere else. Either way they are having trouble baying us back. Sometimes it takes longer than a month to receive our money."
Many employees were let go during the crisis and cab companies have been experiencing a lot of trouble collecting the money to cover their tabs, according to Yıldırım. "We conduct our business with people. I have been working here in Istanbul’s Maslak district for the past 20 years. We talk to company executives. ’We give our employees money to cover their cab fairs’ they say. Finally they have forbid us from providing cabs for their employees outside of business hours."
"When a customer we have been working for years tells us he or she will pay later, it is hard to say no," said Atilla Tırıl manager of the Kule Taksi.
"This is the first time cab drivers provide transportation on credit," said Semih Kaçanoğlu, chairman of the Istanbul Chamber of Taxi Drivers. "Many cab companies, especially the ones located in Istanbul’s business districts such as Maslak, Mecidiyeköy and Levent, have begun to open accounts for local businesses. Sometimes their debts reach 400 liras to 500 liras per person. The payments are received monthly."
However, some cab companies have been struggling to obtain the money they have rightfully earned from the companies, said Kaçanoğlu. "Many cab customers have also been choosing to travel by minibuses. Half of some 18,000 cabs operating in Istanbul are waiting at the cab stops, as there is no business. Those who manage to find work are unable to receive money due to cash shortage, which buries them deeper in debt."
On the other hand, the crisis has turned out to be quite beneficial for pirate cabs. Their number is increasing rapidly as well, warned Kaçanoğlu. "The government should take necessary precautions to help get cap companies out of debt," he said, also requesting that taxi fares should be increased.
"I am keeping 16 books. My balance receivables have reached 7,500 liras," said Osman Yıldırım, the head of a taxi stop in Maslak Çarşı. "Many employees use cabs in their daily run around, or when they are pulling a night shift. Some customers are unable to write off cab fares to their companies, others receive the money for the ride but spend it somewhere else. Either way they are having trouble baying us back. Sometimes it takes longer than a month to receive our money."
Many employees were let go during the crisis and cab companies have been experiencing a lot of trouble collecting the money to cover their tabs, according to Yıldırım. "We conduct our business with people. I have been working here in Istanbul’s Maslak district for the past 20 years. We talk to company executives. ’We give our employees money to cover their cab fairs’ they say. Finally they have forbid us from providing cabs for their employees outside of business hours."
"When a customer we have been working for years tells us he or she will pay later, it is hard to say no," said Atilla Tırıl manager of the Kule Taksi.