The Transport Advisory Committee held a meeting on Monday (11th). After the meeting, Chairman Zhang Yanliang said that members welcomed the government's various measures to improve the operation and competitiveness of taxis, and would express their views to the government on the application for taxi fare increase.
The focus in the market is that the fee will increase by at least 20%, but the increase in the price and the amount will alleviate the cost increase in the short term.
The government's long-term plan is to liberate drivers from the owner-dominated interest structure, and do not need to earn income through illegal means. When they improve their hospitality and service quality, they can attract more passengers.
Earlier this month, the government revealed a series of measures to improve taxi services, including reprocessing fare increase applications.
The last fare increase for taxis was in 2017, and the industry applied for a fare increase the following year. However, due to changes in the project and social instability, the government did not put it on the agenda until recently.
It is difficult for passengers to accept an increase of at least 20% from the table, whether it was then or today, but we must also understand that the price of LPG for vehicles has rebounded from a low level in the past five years, and maintenance, insurance costs and overall inflation have also increased to varying degrees. However, the net income of drivers has generally declined, and the fifth wave of the new crown epidemic has further reduced the number of passengers. Taxi fares are not without reason.
Make sure the price increase benefits the driver
But in any case, the government must ensure that the vast majority of new fares go into the pockets of drivers.
Otherwise, all the benefits of the fare increase will go to the car owner, increasing the rate of return of owning a taxi license, and supporting the market for the declining license price, while the driver continues to suffer.
The government has stated that most car dealers and car owners' chambers of commerce will not increase car rentals for about three to six months after the implementation of the fare increase. However, recently the Commissioner for Transport, Law Sook Pui, said that the statement has become general, and only replied to the Legislative Council that this is "tacit understanding and consensus". , "For a period of time, car owners should not increase car rentals", and the protection for drivers seems to have weakened.
To convince passengers and the public that the fare increase is justified, the government will set a period for the no-addition clause and make it binding.
The fare increase reflects the predicament of the taxi industry, which has always been related to the tens of billions of dollars in the license interest structure. Although the license plate price has dropped from the peak in recent years, the average taxi license price in the urban area is still nearly 5 million yuan, which is close to the price of the car on the private building.
The average driver can only rent a car from a car dealership, and must pay the car rental and other costs. Many drivers will pick up customers, go around the road, and overcharge their fares even knowing they are breaking the law. The overall service quality has deteriorated.
The Transport Department earlier suggested that taxis could increase the number of passengers to a maximum of 6 people, making them more competitive in picking up passengers from airports and border crossings, but the fares are the same as other taxis.
(File photo / Photo by Yu Junliang)
Licensing monopoly must be broken to save drivers
While the government is discussing the increase in taxi fares, it is also discussing the improvement of services, but the main target is still drivers, especially the establishment of a points system for taxi drivers and a two-level point deduction system.
Taxi drivers must operate legally, but the government is also responsible for giving drivers a proper living space. Even if drivers work according to regulations, they can live a life. Passengers’ impressions and services will improve, and they will be more willing to take taxis. Drivers’ income will also increase.
In the rest of the improvement plans, it is mentioned that the earlier proposal for franchised taxis should be revised, and a fleet system will be introduced, and some drivers will be employed in the fleet.
Perhaps the government estimates that when drivers become employees, they can stabilize their incomes, but the official document does not mention specific terms.
If drivers are only hired for low wages, there is still no hope of improvement in life, and there is no incentive to be hired.
In fact, in the past, the TAC suggested that the government could consider issuing new licenses. New bidders are only allowed to apply for one license, and the license is limited for a limited period and has transfer restrictions.
Discussions by the transport authorities have focused on the taxi industry, and even if it touches on online booking services, it is limited to the fleet system and the strengthening of penalties against illegally renting cars or taking passengers for pay.
However, since the government has mentioned the need to improve personalized point-to-point transportation services, it cannot exclude the online private car service. After all, this goes against the trend of innovation and technology and travel trends.
Academic institutions and even the Consumer Council have also suggested standardizing online car-hailing to ensure driver income, passenger safety and travel data, and reduce conflicts between taxis and online-hailing platforms.
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