LINE

Text:AAAPrint
Society

Chinese city scraps franchise fees to break taxi monopoly

1
2015-09-15 13:09Xinhua Editor: Mo Hong'e

Hangzhou, in eastern China's Zhejiang province, is planning to eliminate taxi franchise fees paid to the government as it seeks to break an oligopoly on the industry.

With taxi-hailing apps now challenging a long-established cartel in the taxi industry, cab drivers have been feeling the pressure of increasing fees and more competition.

To help drivers earn more money, Hangzhou plans to scrap the government's portion of the management fees retroactively starting from January 1 this year, according to a draft guideline released on Monday.

The new policy will mean an average of 400 yuan (63 U.S. dollars) deduction in fees for taxi drivers, Lu Xiande, vice chief of the city's traffic management bureau, said. The government would also refund nearly 100 million yuan collected so far this year.

Currently, taxi drivers in Hangzhou pay up to 8,000 yuan a month to register with one of a small number of large management companies.

China's taxi management system is characterized by a select number of large companies known for levying exorbitant operation fees, which are blamed for demoralizing cab drivers and result in poor service.

The emergence of taxi-hailing apps has challenged the current system, allowing customers to resort to a larger pool of private vehicles. But more options means more competition and the technology has increased pressure on cab drivers, leading to protests in some cities.

In response, several Chinese cities have pledged to remove the franchise fees.

In May, Yiwu city, also in Zhejiang, announced it would go a step further and remove the taxi license quota, which is blamed for further increasing the scarcity of cabs and making the oligopoly possible.

The guideline also promised to trim taxi ownership and management rights and establish two state-owned companies to regulate the market.

 

  

Related news

MorePhoto

Most popular in 24h

MoreTop news

MoreVideo

News
Politics
Business
Society
Culture
Military
Sci-tech
Entertainment
Sports
Odd
Features
Biz
Economy
Travel
Travel News
Travel Types
Events
Food
Hotel
Bar & Club
Architecture
Gallery
Photo
CNS Photo
Video
Video
Learning Chinese
Learn About China
Social Chinese
Business Chinese
Buzz Words
Bilingual
Resources
ECNS Wire
Special Coverage
Infographics
Voices
LINE
Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2018 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.