Opening key to remove obstacles

Taxi companies in the country operate through franchises and without open market competition, said Yu Hui, a researcher with the Chinese Academy of Social Sciences.

In most cities, those who want to drive a taxi legally have to join a cab company to get a license and must agree to pay "hefty" fees to the management, Yu said.

A problem in the industry is the income disparity between the cabbies and the heads of their companies.