Despite seeing 20 per cent revenue growth over the past year, Téo Taxi is switching the off meter for good on its all electric fleet, known for its distinctive green roofs.
"Téo Taxi is not viable under the current market conditions," said Domenic Bécotte, Interim CEO of Taxelco, Téo's parent company.
Two factors lead to the decision, which leaves 454 drivers without work, according to Bécotte.
Téo Taxi drivers received an email at around 5:30am this morning telling them the company is no longer viable. Some drivers had already arrived at the depot and were met with security guards and a supervisor telling them they no longer have jobs. #CJAD800 pic.twitter.com/qmbxOwe53t
— Matt Gilmour (@MGilmourMTL) January 29, 2019
"A very constraining legislation in the taxi business that does not offer the flexibility to adjust rates and tariffs," he explained, "and the technological system of electric cars that is not yet optimal."
Only the Teslas in the fleet are capable of holding a charge for an entire shift, meaning hours of lost revenues while the company's taxis sit at charging stations.
The teamsters union, which represents the now laid-off Téo drivers, many of whom found out first thing this morning when they showed up to work, only to be told to go back home, responded to the announcement with disappointed.
"This announcement was just as big a surprise for us as it was for our 450 members at Téo Taxi," said spokesperson Christopher Monette. "We should have been notified as a major stakeholder ahead of time."
Taxelco has not yet made a decision about how it will handle the taxi medalists that it is currently renting, and when or if it will liquidate its fleet.
Téo Taxi is not viable under current market conditions: Taxelco CEO. Blames regulations and not yet having optimal technology to power the fully electric fleet #CJAD800 pic.twitter.com/fPCtYTs2fS
— Matt Gilmour (@MGilmourMTL) January 29, 2019