Financial institutions and the taxi-cab industry: An exploratory study in Canada

Amarjit Gill, Nahum Biger, Léo Paul Dana, John D. Obradovich, Ansari Mohamed

Research output: Contribution to journalArticlepeer-review


A current challenge taxi-cab owner/operators face in Canada is the lack of financing for taxi-cabs. This article examines business opportunities and lending risk; it also provides risk management strategies for financial institutions to manage the risk of lending to the taxi-cab industry. Members of the boards of directors and shareholders from the Canadian taxi-cab industry, and lenders from financial institutions that do not provide financing to taxi-cab owner/operators, were interviewed. Board members and shareholders were asked about their perceptions regarding business opportunity, risk, and their willingness to provide collateral for taxi-cab loans. Lenders of financial institutions were asked about their reasons for not providing taxi-cab loans. The findings of this study show that there is a reasonably attractive opportunity for financial institutions to offer financing for taxi-cab owner/operators. However, the findings also show that there are both systematic and unsystematic risks in lending to the taxi-cab industry. This offers recommendations on risk management strategies for Canadian lenders to mitigate the risk in lending to the Canadian taxi-cab industry. Our findings may be useful for new and existing financial/lending institutions, lenders, investors, and taxi-cab owner/operators.

Original languageEnglish
Pages (from-to)326-342
Number of pages17
JournalInternational Journal of Entrepreneurship and Small Business
Issue number3
StatePublished - 2014
Externally publishedYes


  • Banking
  • Credit
  • Finance
  • Financial institutions
  • Risk
  • Service industry

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics


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