(ECNS) - A Ministry of Transport expert says Beijing's latest policy on car-hailing services will not be the reason that prices increase, Beijing Youth Daily reported.
Xu Kangming said the policy completely fits with the ministry's principle that each city should have its own rules, and the capital has its own unique situation and requirements.
In the new policy, Beijing makes it clear that priority will be given to the development of public transportation systems, followed by the moderate growth of taxi and then car-hailing sectors. Authorities said the policy was introduced with full consideration of Beijing's role as capital city, its traffic pressures, and population control.
Xu said the relatively low prices of car-hailing services are the result of hefty subsidies by the companies and a lack of governmental supervision.
The low prices run against market rules and are also unfair to taxis, said Xu.
Xu urged car-hailing companies to improve their service, aiming to mainly target high-income earners and business people with pricing approximately 30 to 50 percent higher than taxis.
