(ECNS) -- Shanghai Dazhong Taxi and Car Leasing Corporation on Wednesday filed a letter to the Ministry of Transport, demanding a competition fairness investigation into online car-hailing services.
In the letter, the taxi company said online car-hailing platforms such as Didi and Uber violated China's rules regarding operation permits. The platforms accepted unqualified vehicles, including private cars, and used them in the kind of passenger transport service provided by taxis, it said.
In addition, the letter claimed that Didi and Uber continually seized market share by offering generous subsidies to both users and drivers, violating China's Anti-Unfair Competition Law.
Compared with online car-calling platforms, traditional taxi firms have to meet higher standards and carry a higher burden when it comes to tax payments, social insurance, employee thresholds, car maintenance/service life, premium rates on car insurance and pricing, said Dazhong Taxi.
Such unfairness has led to low morale and high turnover of employees in the taxi service industry in recent years, resulting in worsening services that have led to the deterioration of the whole industry, the company said.
Conflicts have frequently arisen between cabbies and drivers operating illegally for online car-calling platforms across China, which also poses a threat to social stability, it was added.
Dazhong Taxi suggested that various parties involved in online car-hailing services should be made to obey the same standards for platforms, vehicles, personnel, pricing, taxes, quality guaranty systems and government supervision.
Traditional taxi firms in Shanghai have begun exploring new ways of providing services. In March, Dazhong Taxi released a car-calling app, while Haibo Taxi rolled out a chauffeur service in cooperation with Didi in April, investing 500 new cars and recruiting full-time drivers to operate on Didi's platform.
