Taxi company Green Cabs has halted trading during the Covid-19 pandemic, with the future of 160 jobs on the line.
A message on the company's website reads: "Due to the impact of Covid-19 on our economy and our operation, for now, Green Cabs have halted trading."
However, in an interview with media, Green Cabs general manager Rob Wheeler says it is likely the company, which employs 140 contractors and 18 staff, will not reopen once the coronavirus lockdown is lifted.
About 80 per cent of the company's business is made up of traffic from airports around the country. With travel now off the cards and the borders closed to international visitors, Covid-19 has had a significant impact on the company.
Even prior to Covid-19, the business had been effected by the rise of ridesharing companies, a letter sent to staff outlined.
The letter reportedly said business for the company, which operates in five cities across the country, was down 99.6 per cent.
The company closed its doors on April 2, a week after the country moved into alert level 4 lockdown.
"We were somewhat vulnerable and exposed financially before the outbreak, we are absolutely nonviable now," the letter stated.
"It would take an extraordinary amount of borrowing to see Green Cabs through this period, and we simply cannot service the debt, even if we come out the other side."
The Herald has contacted Green Cabs for comment.
Wheeler told Stuff the company was hopeful it would reopen but was not optimistic.
Green Cabs, which was incorporated in 2007 and has 30 shareholders, applied for the Government's wage subsidy for the 18 staff on its books and was granted $120,873.
The wage subsidy scheme provides a 12-week lump sum payment for employers to pass on to employees if their business has experienced a minimum 30 per cent decline in revenue attributable to Covid-19.
Independent contractors are themselves responsible to apply for the subsidy.
The International Air Transport Association forecasts that there will be 128,300 fewer jobs linked to the aviation industry and tourism sectors in New Zealand if strict travel restrictions are lifted after three months.