Li Shufu: Re-introduction of Taxi Industry Reform

The "Proposal on Promoting Taxi System Reform by Taking Advantage of the Situation" has been proposed by the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and Chairman of Geely Automobile Co. Li Shufu for the third time at the National Committee of the Chinese People's Political Consultative Conference on taxi system reform.

The Li Shufu proposal pointed out that the key to making this highly anticipated reform come true is to break the monopoly management of taxi licenses.

He suggested that according to the size of different cities, pilot cities should be set up to reform taxi systems, and various reform measures should be guided and evaluated scientifically.

At the same time, Li Shufu also reiterated the proposal in last year's proposal, arguing that the taxi industry urgently needs to carry out institutional reforms to break the "hard ice" that interests are solidified. The direction of reform should be to get rid of the above two monopolies and implement full marketization.

Return the allocation of the number of taxis to the market, directly open the right to operate taxis to first-line drivers who are eligible for entry, and allow them to bypass taxi companies that “take profits from fishing boats” and pay the government a certain operating management fee and public Resources occupy costs and provide taxi services directly to the public.

Reviews

In the transformation of traditional industries with Internet thinking, the “testing of water” in the taxi field has been surging. In the past year, apps such as Didi taxis and fast taxis have gained market share and have eroded the originally relatively closed taxi market.

With the use of incentives such as rebates for drivers and red packets, many young consumers have developed the habit of using cars to get a taxi. However, they have also caused problems such as difficulties in getting a taxi on the ground and the driver squashing live.

At the same time, the influx of private car services is also affecting the traditional taxi industry. In some areas, even taxi drivers have a “stab strike” problem.

The use of mobile phone taxis and special car services has opened up a monopoly market for taxis, breaking the monopoly and establishing a fair market order. This is one of the focuses of deepening reforms in various industries. The value of the taxi industry lies in providing passengers with more comfortable, convenient, and efficient services, rather than restricting others from entering the field in the form of “admissions”.