By Michael S. Rosenwald
Washington Post Staff Writer
Thursday, February 1, 2007; GZ07

Barwood Taxi, the county's dominant cab service, has filed for Chapter 11 bankruptcy reorganization.

Officials from the company, which has been in business since 1964, stressed that the operation was not shutting down and that it would be "business as usual" for customers. There will be no job losses, either, they said.

Rather, Barwood Taxi is trying to change its business model, going from a system where drivers are independent contractors paying daily rental charges to Barwood to one in which drivers own and operate cars in a co-op system.

Barwood officials said the system has proved successful in Chicago , San Francisco , Los Angeles and other cities.

"A co-op would allow you to have a stake in a successful, long-term business for years to come," Lee Barnes, the company's president, told drivers, according to a news release. "As owners of licenses and vehicles, you will realize value and you can have greater value if you continue to work hard to provide our customers with a courteous, safe ride in clean, well-maintained vehicles."

Barwood said it was making the changes to cope with increased regulatory pressure and high insurance claims costs. The company filed for bankruptcy reorganization in U.S. Bankruptcy Court in Greenbelt this week.

The company has 400 vehicles in its fleet, including 40 that are accessible to handicapped passengers. Barwood taxis make 4,000 trips a day.