The insolvency administrator has also decided that the RMS services will no longer be provided as of September 9.
The company said that in two years since 2020, when RMS addressed a request to the Riga municipality company “Rīgas Satiksme” (RS) to raise the price of the sub-contracted service, the total loss of the company has reached more than EUR 4.45 million.
In a statement, RMS Board member Dace Aizupiete thanked passengers and employees for their trust and apologized for the inconvenience caused by difficult solvency conditions.
RMS said that during the nine years, from May 1, 2013 to August of this year, the company had transported 75.5 million passengers. The RMS minibuses have travelled 102,508,978 million kilometres on the Riga City routes during these years in 3,434,493 million hours.
A 70% drop in passenger traffic during the Covid-19 pandemic had significantly reduced the company's revenue, so in September 2020 the company addressed RS with a request to raise the price of the sub-contracted service. The RS did not agree with this, and the solutions took too long.
In the middle of summer 2022, however, an agreement was reached with the RS on the possible termination of the contract and the takeover of routes. At the last moment, however, the RS Board has taken another decision which led to the fact that the service will no longer be available from now on.