Transaction Capital, a major shareholder in WeBuyCars, has experienced a significant decrease in its share value in 2023. The company’s shares have plummeted by nearly 80% this year, marking a drastic downturn for the firm. This decline is largely attributed to a downturn in the taxi market and a miscalculation of used car prices and has also caused the CEO of WeBuyCars owner to quits.
Downturn in the Taxi Market Leads to Restructuring
The downturn in the taxi market has necessitated an ‘aggressive’ restructuring of SA Taxi, another company in which Transaction Capital holds stakes. The taxi market’s poor performance has had a significant impact on Transaction Capital’s overall performance and has contributed to the sharp decline in its share value.
CEO of WeBuyCars David Hurwitz owner quits
In light of these challenges, Transaction Capital announced on Monday that CEO David Hurwitz would be stepping down at the end of 2023. Hurwitz, who joined Transaction Capital in 2005, will step down as group CEO and as a board director, and member of all group committees at the end of December. The company made this announcement late on Monday, marking the end of an era for Transaction Capital under Hurwitz’s leadership.
The year 2023 has proven to be a challenging one for Transaction Capital. With its shares losing almost 80% of their value, aggressive restructuring within SA Taxi due to a downturn in the taxi market, and the impending departure of CEO David Hurwitz, the company faces a period of significant change and uncertainty.