It's time to end taxi sector monopoly

Strikes by taxi drivers in a number of provincial capitals are not just a protest against the so-called Uberification that is impacting on their livelihoods. It is also a demonstration of discontent at the government-approved monopoly of the taxi business.

Under the current business model the industry is completely monopolized by government-approved taxi companies. Taxi drivers have to pay high fees to rent the taxis from the companies, irrespective of how much they make. And the fares are also decided by the government, which has made it hard for market mechanism to play its role.

This is not the first time taxi drivers have gone on strike because of hardship. Many taxi drivers complain that the bulk of the money they earn has to go to the taxi companies and they can hardly make ends meet despite often working 10 hours a day.