Reforms to be Introduced to the City’s Taxi Industry
Members of the national advisory body is urging reform in the taxi industry during the annual session of the CPPCC in Beijing. A representative from Nanling Village Commission in Longgang is raising concerns on the major obstacle to the taxi industry’s development when car calling apps are now being widely used. He suggested that the city government should break the oligopoly of the taxi industry and create a standard regulation on taxi services.
And because of this the government has forced the taxi industry to undergo reforms and is inviting private investors to operate using the standardized regulations. Business license will be issued by local government to only a few taxi companies which effectively create an oligopolization in the industry. Base on statistics by the State Council for every 100,000 residents there are nine taxis, while in Lanzhou there is six taxis for every 100,000 residents. Beijing has the most taxis with 42 taxis for every 100,000 residents.
With a variety of car hailing smartphone application like Didi Zhuanche coming up, the traditional taxo industry is being challenged to compete in the market, but still the government insist that only taxi companies will be granted the legal right to operate taxi businesses. But a local lawyer argued that the taxi industry should be open to market competition and the government should streamline the regulation of alternative taxi services.