High franchise fees, competition from private cars top grievance list

Taxi drivers in Nanjing, Jiangsu province, joined a strike that has swept the country since Thursday afternoon demanding a reduction of the monthly franchise fees paid to taxi companies, which eat up a large share of their revenues.

On Thursday, hundreds of taxis were parked near Nanjing's two railway stations, the long-distance bus station and the airport. Many taxis on the road refused to carry passengers.

On Friday, the city's transportation system was affected at peak times, with many striking taxi drivers suggesting through ride-hailing Internet apps that their colleagues participate.

Workers at the railway stations and the airport asked passengers to switch to buses or subway trains.

Liu Xingyou, a taxi driver, said that he has to pay 7,000 yuan ($1,130) to his company every month, and he only earns about 12,000 yuan.

"But I also need to pay for the natural gas, which is more than 3,000 yuan a month," the 56-year-old said. "I get up before 6 am every morning and sit for about 14 hours a day, only to get 2,000 yuan a month. That's unbearable."

According to Nanjing's transport department, the city now has about 11,700 taxis. Drivers of some new models of vehicles are required to pay a franchise fee of 9,000 yuan a month. Drivers in Beijing and Guangzhou pay about 4,000 or 5,000 yuan.

Licenses for taxi companies have been largely frozen since the early 1990s. Big taxi companies operating today generally got their licenses earlier. They collect fixed fees from individual taxi drivers across the country.

Some drivers also complained that a city's charging standards, low fuel surcharge allowances, five-hour double-billing during peak hours and the new ride-hailing apps have greatly hurt their incomes.

"We hope that the fuel surcharges can be raised, the double-billing hours extended to 24 hours and the ride-hailing apps that allow private cars to enter the market banned," Liu said.

On Sunday, taxi drivers in Shenyang, Liaoning province, went on strike, demanding that all private cars be prohibited from acting as taxis.

On Thursday, China's Ministry of Transport issued a regulation allowing only licensed taxis to offer services through the apps.

The ministry said that while innovations are welcomed, the ride-hailing apps should be covered by the country's transport regulations and do not provide a platform for private car owners to enter the taxi business.

Some local governments have put forward similar rules.

This week, Beijing and Shanghai decided to fine drivers 30,000 yuan to 100,000 yuan if they use a private car as a taxi. In December, the Shanghai government detained and fined 12 private car drivers

The transportation department in Zibo, Shandong province, banned the use of the Didi Zhuanche service, which enables the use of private cars.

In October, the transportation departments of Shenyang and Nanjing began fining car owners for acting as taxis.

Zhu Pingdou, vice-president of app maker Didi Dache, said the company "felt sorry" that the Zhuanche service had been banned.

"The service has provided a solution to many cities' traffic problem," Zhu said. "Maybe it should not be simply banned; it provides convenience to passengers."

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