Bureaus Exclusive
Who should pay the additional taxi fare?
By Tiger Wu (chinadaily.com.cn)
Updated: 2010-04-24 15:48
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Recently, Shenyang traffic authorities has recommended charging an additional fare to compensate taxi drivers of the high price of gasoline. Authorities argued that a low charge will hurt taxi drivers and cause traffic jams. The argument is problematic for several obvious reasons.
It is rational to raise the fare and protect taxi drivers whose work is essential for the running of modern cities. But it is difficult to explain why passengers should pay instead of taxi companies, who take away two-thirds of drivers' income.
Industry insiders say high gasoline prices, taxi industry management and illegal taxis plague the taxi industry. But the biggest problem is conflict between taxi companies and drivers.
Drivers can usually earn around 6,000 yuan ($878) onthly in Shenyang, but they have to pay at least 3,000 yuan ($439) to the company, who owns the franchise license. After gasoline and maintenance, the net profit is around 1500 ($219) to 2000 yuan ($292). This is not enough to make a living.
To find a solution, local authorities should investigate whether companies exploit drivers and how they set standard rental fees. As a competitive industry, government should stop control and open the market for any individuals and companies who want to join if they follow regulations and laws.
As it stands, local authorities are not acting logically. The traffic administration bureau reshape its taxi managing model to meet the demands of drivers, passengers and companies.
