OPINION> Columnist
Cab drivers run off the road
By Li Hongmei
Updated: 2008-11-17 11:51

Hundreds of taxis pulled up at the entrance gate to the Sanya Municipal Office, in China’s southernmostHainanProvinceA large gathering of cab drivers protested to the local government against the high license fees, unfair competition from ‘illegal’ taxis and problems regarding contracts with taxi companies. The cabbies decided to go on a strike on Nov.10, clearing all the taxis off the city’s streets.

The incident followed the most sweeping ever strike by cab drivers in Chongqing,China’s southwest municipality earlier this month, as well as sporadic strikes inHubeiandGansuprovinces. There, drivers walked off job and took to the streets on a designated day, but were finally persuaded back to work by the local authorities the following day. All the strikers called for a substantial decrease in their taxi lease, or ‘fenzi’ in Chinese, to the designated taxi companies.

Taxis inChinaare generally affiliated to taxi companies who get permission from the local transport authorities. The companies have to apply for approval from the local governments before they are allowed to have cars on the streets. Therefore, the companies pump money out of the drivers’ pockets to purchase the government-issued approval certificates.

In the case ofChongqingMunicipality, each taxi driver there had to pay 230 yuan per day, higher than the other three municipalities inChina. The financial financial strain from the company and the poor management by local governments triggered a general strike on Nov.3 and 4, in which thousands of cabbies went on strike, and smashed at least 20 vehicles including three police cars. Mayor Bo Xilai called for a hearing on Nov.6, inviting representatives of cab drivers and citizens to have a face-to-face talk with municipal officials, and decided at the meeting to put such measures as reducing fees and stepping up monitoring over the industry in place as soon as possible. The mayor also pledged to cut cab drivers’ fees to the same level as last year. The largest-ever strike inChinahas since been settled.

China’s taxi industry emerged immediately after reform and opening up policies were adopted, and the sector mushroomed in the 1980s through to the early 1990s. Before 1996, taxi drivers could buy their own cars, but they had to join a State-run taxi company, asChina’s policies then limited the individuals’ rights involving in public services like transport. Taxi drivers then had to turn in 1,000 yuan a month to their companies as managerial fees. In the late 1990s,Beijingwas considered thelead example in streamlining taxi industry, and began expanding the rights of taxi companies from mere managing taxis to owning them. Many other places acrossChinafollowed suit. Apart fromWenzhou, a township in the easternZhejiangprovince, taxis elsewhere inChinaat present are owned by the taxi companies. They in turn are directly under the leadership of the relevant local authorities. As a result, taxi drivers are charged a certain amount of fees or ‘fenzi’ to keep them in business and their companies in operation.

The amount of ‘fenzi’ varies depending on the local conditions and fares. For instance, taxi drivers inChongqingMunicipalityfelt having to pay 230 yuan per day a heavy burden on their merger daily income.Beijingtaxi drivers also complained a lot over the rising contribution money and runaway fuel costs. Many taxi drivers inBeijinghave quit their jobs and now eke out a living doing something else, or even risk a heavy fine driving ‘illegal’ taxis, referring to those taxis which cannot be traced to any taxi company, and are therefore illegal vehicles for public transport.

Chen Liye, who has driven a cab for 12 years from Huairou, a suburb ofBeijing, said he had been thinking about buying a car of his own to join in army of ‘illegal’ cab drivers. He said he never thought of himself as a Beijinger, as he thought only those born and bred within the nowadays second-ring road areas wereBeijingpeople. ‘Those Beijingers cannot afford laborious work and low incomes, so most taxi drivers are now from the suburbs.’

What Chen said is part of the true picture of the currentBeijingtaxi industry. The old days ofBeijingtaxi drivers—informative, talkative and with a sense of humor—seem to have faded away from people’s memories. Beijing-born, and raised, the taxi drivers in those days were much admired by people from outside the city for their endless knowledge of the history and culture of the capital, their intense concern for current affairs, and their strong sense of pride as a Beijinger. They could easily find any narrow lane and courtyard you could name. But one of my friends fromNew Zealandtold me that day she took a taxi at Fu Xingmen to the famous Tiananmen Square, but much to her astonishment, the driver said he could not find the place, for he explained he was not a driver from the city but from a suburb neighboringHebeiProvince.

Chen also echoed this, saying he too was unfamiliar with many places inBeijing, especially the narrow lanes, or hutongs. Chen said he was very sympathetic to the plight the taxi drivers and understood why some held strikes inChongqingand some other cities. Although he thought the ongoing contribution fee of 170 yuan per day inBeijingstill tolerable, he has long intended to cut ties with the company and buy a car of his own.

‘Yes, it is risky being an ‘illegal’ driver, as you have to beware of the crackdowns launched by the police. Sometimes they are in plainclothes and disguised as ordinary passengers, but once you take them to the destination, you will be greeted by handcuffs and a heavy fine, and your car will definitely be confiscated,’ Chen said. ‘But at least you don’t have to wake up every morning feeling you owe the company 170 yuan, and comparatively speaking, the risk is well worth the anxiety of owing a debt.’

As a matter of fact, the ever-growing number of ‘illegal’ drivers in recent years has been the focus of common resentment amid taxi drivers. ‘Illegal’ drivers have long been accused of unfair competition and substandard services, and the local authorities have also considered them a malignant tumor infecting the taxi industry and marring the city’s image. In 2006, the central government launched a nationwide crackdown against the ‘illegal’ taxis, but they just resurfaced later.

But legal or not legal, that is a question. Frankly speaking, the taxi industry is not supposed to be a monopolized industry ‘legalized’ by the government and under the protective umbrella of the government. Instead, it should be an industry competing to survive like many other sectors, say the catering industry, in which free entry, development and pricing should be allowed by market rules. Some experts also deemed it compulsory for the taxi industry to undertake radical reforms. They said at least the market entry system should be extended to cover individual drivers, rather than exclusively to the taxi companies. Only when the lock over the taxi industry is entirely smashed, can taxis have a smooth run and passengers have an unimpeded travel. We do hope theChongqingcase will sound a warning bell to the related authorities.