By Zhou Yiyi and Han Jing
A recent public joint hearing on taxi fare adjustment and petrol oil prices garnered widespread attention as the outcome could severely affect Hangzhou citizens’ daily lives.
Twenty-four delegates spoke during the hearing, and the final price adjustment program will be presented to the Hangzhou Municipal Government in late September, pending further discussion.
The main points of discussion in the hearing were whether the contracted daily fee charged to taxi drivers should be adjusted and how to organize operation structure reform among taxi companies.
Hangzhou taxi companies’ current operating mode is very complex, consisting of self-owned enterprises, turnkeys, limited liability contracts, buyouts, subordinated enterprises and other models. The contracted daily fee is an expense daytime and nighttime drivers should be charged to the car owners.
Deputy Secretary of Hangzhou Transportation Bureau Wang Yichuan said that the taxi industry associations have organized insider’s meetings, with most of the attending companies in favor of the adjustment plan where “the fee will be reduced by 10 yuan ($1.56) each day.”
The insiders who participated in the meeting said the reason for the cut is because buyout and subordinated taxi vehicles account for 50 percent of Hangzhou’s taxis. Their benefits will be hurt if the quota is reduced drastically.
Cao, a driver from Zhejiang Travel Taxin Company, said he hoped that the quota could be reduced further, as the current adjustment will only bring about a slim increase in income for driver.
Many delegates at the meeting directly blamed the city’s taxi companies, claiming that the flawed system creates more burdens for drivers.
In response, Wang from the transportation bureau pledged that they will further reform the operations mechanism after research is completed.
