Quickfire first-half goals from Erin Cuthbert and Melanie Leupolz inside the opening half hour handed the visitors a strong advantage and despite an improved second half display, the holders struggled to find a route back into the game and Beth England sealed the tie in the final moments.
Taylor acknowledged the contest was always going to be a challenge with City’s injury crisis but rued the defensive errors which led to the 2-0 half-time deficit.
“The first half is where we lost the game,” he said. “We were in decent control for 20 minutes but as soon as we conceded, it affected us.
“They were sloppy goals. We gave away cheap goals and were up against it.
“The second period was fairly even. We had some moments and then conceded at the end.
“We had a good conversation at half-time and changed things around. It was okay in that respect and we showed spirit to come back but those early goals decided the tie.
“We had some moments. Lauren Hemp was dangerous and we just needed to improve our quality in the final third.
“I thought we could have created a bit more around the box. Whenever we tried to get the ball down and play, that created moments for us.
“When you give away goals in quick succession in the first half, it’s always difficult, especially against a side like Chelsea.
“We switched off defensively and you can’t do that against Chelsea. They have real strength in depth – regardless of who they start or play, they’re a good team.
“At half-time, I thought we were still in the game and we showed spirit but we need to look at the quality of our play up until the final third.
“It was difficult circumstances with injuries but we’re disappointed with the manner of the goals we conceded.
“We’re disappointed to go out in the semis and not retain our trophy.”