Apps reveal taxi market flaws

When technology advances create competitors for a monopoly, the authorities should not only regulate the newcomers, but more importantly take the opportunity to end the monopoly that has fattened a few.

Apps that enable car owners to use their cars in effect as unlicensed cabs have become popular and taxi drivers in Shenyang, Liaoning province, went on strike last week demanding such "black cabs" be stopped.

The competition from private car owners is unfair, because they do not pay fees to taxi companies, which accounts for nearly half of taxi drivers' revenues. Beijing and Shanghai decided early this week to fine these "black taxi" drivers 30,000 yuan ($5,000) to 100,000 yuan.