Lender to taxi industry posts record loss

JOHANNESBURG - The parent company of the country’s main taxi financier, Transaction Capital, has posted an interim R1.3-billion loss.

Power cuts, rising petrol prices and fewer commuters are squeezing the taxi industry.

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The tight economy is making it harder for taxi owners to service debt they owe to SA Taxi, which together with WeBuyCars, falls under Transaction Capital.

The group’s operating profit slumped 325-percent in the six months to March.

The company says it will now restructure by reducing the number of vehicles to be refurbished and refinanced,  and finding other channels to sell repossessed vehicles.