China News Service, Beijing, July 29 (Zhang Ni) Recently, the General Office of the State Council issued the "Guiding Opinions on Deepening Reform and Promoting the Healthy Development of the Taxi Industry", and the Ministry of Transport and other seven departments jointly promulgated the "Interim Measures for the Management of Online Booking Taxi Business Services".
The release of two long-awaited blockbuster documents not only clarified the legal status of online car-hailing, but also ushered in an important turning point in the development of the traditional taxi industry. In the future, new taxi operating rights will no longer be paid, and the controversial high "portion money" is also expected to be reduced.
All new taxi operation rights are used free of charge
– Forcing the "portion money" down?
[Opinion]
All new rental car operating rights shall be subject to term restrictions, and indefinite restrictions shall no longer be implemented. The specific period shall be determined by the city people’s government according to the actual local situation. All new rental car operating rights shall be used free of charge, and the operating entity shall not be changed. If the existing rental car operating rights need to be changed within the term, they shall be changed in accordance with the conditions and procedures stipulated by laws and regulations, and shall not be speculated or transferred without authorization. For existing rental car operating rights that do not specify the specific operating period or have been used for a fee, the city people’s government shall comprehensively consider all factors, scientifically formulate a transition plan, reasonably determine the operating period, and gradually cancel the paid use fee.
[Interpretation]
As part of the "molecular money", the paid royalties for operating rights are directly related to the cost of taxi enterprises and the income of taxi drivers, so the reform of operating rights is also regarded as the "bull’s nose" of the reform of traditional cruise vehicles.
Wang Hao, deputy director of the Highway Traffic Development Research Center of the Highway Science Research Institute of the Ministry of Transport, analyzed the China News Service (WeChat official account: cns2012) reporter that in the past, the paid royalties charged by the government to companies or individuals for operating rights used to be an important source of funds for urban transportation construction. But now the operating rights are not just a service license, but have become an investment and speculation indicator of "rare goods to live in", increasing the operating costs of taxi companies or individuals, forcing enterprises to enter a vicious circle of "multi-pull fast running" while resisting quantity adjustment. Expert analysis said that the cancellation of the operating rights fee also makes "molecular money" have room for downward adjustment.
Contract fee standard can be negotiated
– Will "portion money" go down?
[Opinion]
Encourage, support and guide taxi companies, industry associations to negotiate on an equal footing with taxi drivers and trade unions, and rationally determine and dynamically adjust taxi contract fee standards or quota tasks according to factors such as operating costs and freight rate changes. Existing contract fee standards or quota tasks that are too high should be reduced. To protect the legitimate rights and interests of drivers and build a harmonious labor relationship. Taxi companies are strictly prohibited from charging drivers high collateral, and existing collateral that is too high should be reduced.
[Interpretation]
The so-called taxi "part money" generally includes vehicle depreciation, insurance, maintenance fees, driver’s basic salary, social insurance, business management costs, taxes, profits, and the sharing of operating rights and royalties. High "part money" has also been controversial.
Wang Hao believes that with the entry of online car-hailing into the rental industry, taxi drivers have more employment options. Market regulation has increased the bargaining chips between drivers and enterprises over "part money", and the participation of trade unions and industry associations has made the negotiation more organized. In the future, the government will regulate that companies cannot charge drivers high risk deposits, etc., because high deposits limit drivers’ employment options.
Dynamic adjustment of taxi capacity scale
– Quantity control is no longer "monolithic"?
[Opinion]
It is necessary to take into account the characteristics of large, medium and small cities, the diverse travel needs of the public and the development orientation of taxis, comprehensively consider factors such as population size, economic development level, urban traffic congestion, and taxi mileage utilization rate, and rationally grasp the scale of taxi transportation capacity and the share ratio in the urban comprehensive transportation system. Establish a dynamic monitoring and adjustment mechanism to gradually realize market regulation. New and updated taxis, priority is given to the use of new energy vehicles.
[Interpretation]
In many parts of China, the number of taxis has not been adjusted for more than ten or even twenty years. For example, since 1994, the total number of taxis in Beijing has been controlled at the standard of more than 60,000. Does the dynamic adjustment mechanism mean that the total number of taxis will be liberalized?
Wang Hao analyzed that the biggest problem with the control of the number of taxis in the past was that there was no dynamic adjustment mechanism. The number of taxis in some areas remained unchanged for many years, and the original market formed a solidification of interests. But in the future, with the automatic adjustment of the market, this situation is expected to be broken, and some industry participants will also anticipate the market to avoid blind entry and disorderly competition. But he stressed that due to the characteristics of the taxi operation model, dynamic adjustment does not mean liberalizing the control of the number of taxis, especially in big cities like Beijing.
Establish a dynamic adjustment mechanism for freight rates
– Will taxis bid farewell to the "low price era"?
[Opinion]
Taking into account factors such as taxi operating costs, income levels of residents and drivers, traffic conditions, service quality, etc., scientifically formulate and timely adjust the level and structure of taxi freight rates. Establish a dynamic adjustment mechanism for taxi freight rates, improve pricing rules, and improve the linkage between freight rates and fuel prices. Give full play to the leverage role of freight rates in adjusting the supply and demand relationship in the taxi transportation market.
[Interpretation]
Wang Hao pointed out that taxis in China are generally operated at low prices and are even used as public transportation to and from get off work, making the supply far less than the demand. Dynamic adjustment means that the future taxi fare will be able to return to a reasonable level. But he also stressed that such adjustment needs to be dynamically evaluated, because excessive freight rates will lead to a significant reduction in market demand and affect the "rice bowl" of taxi drivers.
The integrated development of cruise cars and online car-hailing
– Either one or the other?
[Opinion]
Encourage cruise car operators and online taxi booking operators (hereinafter referred to as online ride-hailing platform companies) to implement corporatized management in accordance with the modern enterprise system through mergers, reorganizations, and absorption of shares, so as to achieve the integrated development of new and old business models.
[Interpretation]
The legalization of online taxi-hailing means that traditional taxis will face the fate of being eliminated? In this regard, Vice Minister of Transport Liu Xiaoming commented that it is still uncertain who will replace the online taxi-hailing car and the cruise car. The two have their own strengths, and more of the two formats promote each other. It is up to the market and passengers to make the final choice.
In Wang Hao’s opinion, the market demand for traditional cruise cars is still there, and the taxi mode of raising hands and beckoning cars makes the cruise cars operate more efficiently in the core areas of the city. In addition, passengers who have privacy requirements for the ride route or elderly passengers still have demand for traditional cruise cars, and cruise cars can also get orders through online platforms in their spare time. The integrated development of the two will provide people with a variety of choices.
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