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China Daily Website

Reform taxi management in Beijing

Updated: 2012-12-26 20:45
( chinadaily.com.cn)

It is becoming more and more difficult to take a taxi in Beijing, especially during rush hour. The freezing cold this winter only highlights the urgency to solve the problem, says an article in 21st Century Business Herald. Excerpts:

According to a report by the Chinese Academy of Social Sciences issued on Dec 20, Beijing ranks 28th among 38 big cities in China in terms of the easiness to take a taxi.

The causes for the difficulties are complicated. To begin with, it is a byproduct of traffic congestion, because taxi drivers do not like to work in traffic jams.

Another cause is that taxi drivers' income is quite low. Taxi companies prefer to employ drivers from rural areas without proper training as public service providers before starting work.

In addition, the number of taxis in Beijing is strictly controlled by the authority. The taxi companies fiercely oppose increasing the number of taxis in case their monopoly profits are affected. The drivers have to pay their daily fees to the taxi companies. This constantly increasing fee takes a large proportion of the taxi drivers' income.

Thus, the monopoly system and the affiliated backward service and management system are the fundamental causes for the difficulty to get a taxi in Beijing.

If the Beijing municipal government really wants to solve the problem, it should reform the monopoly taxi management system and promote the healthy development of this business through market competition.