· Li Shufu re-established taxi reform: first set up a pilot city for reform

This year's National Conference and the reform of the taxi system have once again become the focus of the deputies. The reporter learned that Li Shufu, chairman of Geely Automobile and member of the National Committee of the Chinese People's Political Consultative Conference, submitted the "Proposal on Promoting the Reform of Taxi System by Taking Advantage of the Situation" (hereinafter referred to as "Taxis Proposal"), suggesting to break the monopoly management of taxi licenses and establish market-oriented Taxi operation system; in Li Shufu’s other proposal “Proposal on Strengthening Tax Management of Business Transactions under Informatization Technology” (hereinafter referred to as “Transaction Tax Proposal”), it is recommended to strengthen supervision and taxation on online trading activities, and take a taxi. Services such as software and special vehicles will also be included in the taxation scope.
According to statistics, the number of taxis in Beijing has reached 66,000 in recent years. According to the statistics of the China Road Transport Association Urban Passenger Transport Branch, taxis currently bear 7% of Beijing's urban traffic. However, the restrictions on licenses and the too rigid profit model have begun to challenge the taxi industry in both competition and profitability.
The industry reform has already signaled that "this is already the third consecutive year that Li Shufu has proposed a taxi reform." Geely Automobile’s relevant person told the Daily Economic News reporter that "the progress of the previous two years has been very slow."
It is understood that Li Shufu submitted the "Proposal on Establishing a Unified Tax Market Access Standard and System" and "Proposal to Establish an Open and Fair Market Competition Order in the Taxi Market Supervision System" in 2013 and 2014. Due to the complexity of the problem, many key issues have not been resolved.
On the one hand, due to the limitation of the number of taxi licenses, the number of taxis is difficult to increase as the market demand increases, which in part leads to the problem of “difficult to take a taxi”. On the other hand, due to the restrictions of monopoly operations, taxi drivers are often charged a higher “money”, and their income faces challenges as costs increase and competition intensifies.
Taking Beijing as an example, the reporter learned that taxi drivers need to pay more than 5,000 yuan a month to save the subsidies such as fuel subsidies. The taxi drivers actually pay nearly 4,000 yuan. To this end, a Beijing taxi driver complained to reporters: "Prices are rising, we must increase revenues by running more."
Since last year, the taxi industry has faced more changes due to the impact of taxi service software such as Drip and taxi. In addition, the emergence of “special car” has begun to cause a gap in the monopoly of taxis, which has also triggered the taxi industry. The outbreak of contradictions.
Under such circumstances, the above-mentioned person in charge of Geely Automobile believes that the reform of taxis this year should be effective. "In January, the Ministry of Communications also introduced a reform plan, showing some signs of reforms in the taxi industry."
It is understood that in the "Opinions on Comprehensively Deepening Transportation Reform" promulgated by the Ministry of Communications in January, it is proposed to improve the capacity delivery mechanism, scientifically adjust the total amount of taxis, and "encourage the development of diversified car services". It has been interpreted as a signal that industry reforms have emerged.
The business model needs to be updated. However, some taxi drivers are opposed to the operation rights and licenses for taxis. They believe that once the restrictions on taxi licenses will further intensify competition, the income of taxi drivers is difficult to guarantee.
In response, the above-mentioned Geely Automobile official reporter said that the number and price of taxis should be determined by the market, and the demand for the taxi market is not fully met.
In fact, according to Li Shufu's proposal, the first step is to establish a “taxis city for taxi system reform”. The more important thing is to break the crux of monopoly operation. This is understood by Li Shufu as the root cause of the taxi industry problem.
According to experts, the monopoly of the taxi industry has brought a lot of unfairness, including the household registration restrictions of employees and the local protection of taxi vehicle purchases.
In the view of the above-mentioned person in charge of Geely Automobile, once the monopoly of the taxi industry is broken, the market can more rationally allocate the industry resources, and more profit models will emerge. It is understood that in most countries taxis are categorized according to the grade, and different services will have different charging methods.
Some analysts believe that after the restrictions are liberalized, more brands of automobile products can participate in the bidding competition in the taxi market fairly. New energy vehicles, including electric vehicles, also hope to promote them faster by taxis. Bring a richer business model and introduce the source of living water for the development of the taxi industry.

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