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Luleå Taxi Takes Over Transport Contracts After North Ride Bankruptcy, Sparking Criticism

Economy & businessEconomy
Key Points
  • Taxi company North Ride has reportedly gone bankrupt, affecting ten transport contracts in Norrbotten.
  • Luleå Taxi has taken over medical and special transport services through direct procurement by Länstrafiken Norrbotten.
  • Bankruptcy administrator Fredrik Sundin criticizes the process while Luleå Taxi's CEO says taking over contracts was never considered.

The taxi company North Ride has reportedly gone bankrupt, leading to Luleå Taxi taking over medical transport and special transport services in several municipalities across Norrbotten, Sweden. According to public broadcaster SVT Norrbotten, the transition has drawn criticism from bankruptcy administrator Fredrik Sundin, who questions the direct procurement process.

North Ride's bankruptcy estate was confirmed on February 27 to not continue operations. The company had ten contracts for special transport and medical transport services with Länstrafiken Norrbotten, which urgently arranged for a new provider. The decision to directly procure Luleå Taxi as the supplier came while bankruptcy administrator Sundin reportedly had interested parties for North Ride's operations.

It appears strange that they directly procure from a party that I have suggested should take over

Fredrik Sundin, bankruptcy administrator

"It appears strange that they directly procure from a party that I have suggested should take over," Sundin told SVT Norrbotten. He claims he was prevented from transferring the existing contracts, which he says is the reason for ending operations.

However, Luleå Taxi CEO Mikael Hjorth disputes this characterization, stating that taking over contracts was never under consideration. "We were asked by Länstrafiken if we could provide resources if a direct procurement became relevant," Hjorth said. "We examined our capabilities and answered the question, and then Länstrafiken chose to directly procure with us."

We were asked by Länstrafiken if we could provide resources if a direct procurement became relevant

Mikael Hjorth, CEO of Luleå Taxi

The financial terms of the new agreements between Länstrafiken Norrbotten and Luleå Taxi remain unclear, with both parties citing confidentiality. SVT Norrbotten reports that Länstrafiken has made exceptions in Luleå Taxi's contract compared to those made with North Ride, particularly regarding accessibility vehicles, though these are expected to be resolved within months.

Länstrafiken Norrbotten AB is responsible for operating special transport services for 13 of 14 municipalities in the county and medical transport for all municipalities.

We examined our capabilities and answered the question, and then Länstrafiken chose to directly procure with us

Mikael Hjorth, CEO of Luleå Taxi

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