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VOL.7 March 2015
Should Tailored Car Service Be Banned?

In big cities like Beijing, Shanghai and Guangzhou, trying to flag down a taxi during the morning and afternoon rush hours is a frustrating experience - passengers have to wait a long time to get one. However, if they use a tailored car service app on their smartphone, a car will materialize by their side within minutes.

Though a little more expensive than taxis, the service is much better and so are the cars. Tailored car service apps like Kuaidi Zhuanche and Yihao Zhuanche have developed quickly in recent years.

But lately, 10 cities, including Beijing, Jinan and Qingdao, have banned such a service, saying the tailored car service was an unauthorized operation. Even though the app developers argue that their business is legal with all the cars obtained from car rental companies and the drivers from companies authorized to provide chauffeurs, the tailored car service cannot be run in these cities. Other cities have also announced that they are considering taking the same measure.

The ban has aroused controversy nationwide. Those supporting it believe the emergence of the tailored car service has adversely impacted the taxi market with regular cabbies' income plummeting. Those against the ban hold that the tailored car service can break the monopoly of taxi companies and provide more options for consumers.

Pro

Zhao Liang

A taxi driver in Beijing

I'm glad to see the government ban the tailored car service. Because of them, my income dropped greatly in recent months.

You may say that we can compete with them. But being on an unequal footing, how can we compete with them? We, regular taxi drivers, have to pay a high franchise fee to our companies. That means every day I have to first earn enough money for my company. But they don't have to. Under the circumstances, the government has two options: banning the tailored car service, or scrapping our franchise fee. I am glad they chose the former in Beijing.

Before the service was banned, many of my colleagues resigned from taxi companies and worked as tailored car drivers. Even though they earned more money, it is not good for the healthy development of the taxi market.

Con

Xie Hongzhen

A Beijinger

I don't think it is a good decision [to ban tailored car service] and the government should immediately lift the ban and give back our right to choose.

The officials who decided to ban tailored car service don't know how difficult it is to get a taxi during rush hours. I live in Beijing, and sometimes have to wait for more than half an hour or even longer before I can get a taxi. On many occasions, I was late for important meetings. Even if I used the taxi-hailing app, I seldom got a response from taxi drivers during those periods.

Then I turned to the tailored car service. The cars were never late in coming to pick me up, the services were much better, and the vehicles were good, not the low-end taxicabs. Though a little expensive, I think it was worth it. I was seldom late when I used the service. But now, I cannot use it.

I don't know why those officials banned such a good service. They should listen to our views as passengers before they made the decision.

Pro

Denis Green

A Briton living in Beijing

Tailored car service, although convenient and easy to get during rush hours when there is a shortage of regular taxis, is too unreliable in terms of price and safety. These tailored cars or "black cabs" don't always use meters, and will sometimes quote their own price, which is usually above the normal rate. Furthermore, there is the issue of safety. When using tailored cars customers who aren't from Beijing or don't know the city well enough may feel a sense of unease when not using a city-registered taxi. Unlicensed drivers using apps to pick up customers can be seen as illegal, and these sorts of issues should be dealt with severely by the government.

Even though tailored car service companies and app developers say they have a series of mechanisms to monitor drivers and ensure passengers' safety, I still do not believe them.

Con

Cameron Frecklington

Journalist at China iDigest

Beijing needs tailored car service. The capital is a city constantly on the move. With its population at 21.15 million by the end of 2013, imagine if all those people started trying to move at the same time. People rushing to work, getting their kids to school, heading to the train station for the Spring Festival... The mind boggles at how these commuters are to be served. With only no more than 70,000 taxis in the city and a limit of four passengers per car, that works out to only 280,000 being able to be transported at any given time. And that does not account for drivers who refuse to work during peak hours, afraid of traffic congestions. Tailored car service allows this burden to be eased while also [sometimes] providing excellent customer service.

Pro

Cui Bing

Transport Bureau of Jinan City, Shandong Province

According to laws and government regulations, to provide a car service, a company should first obtain licenses from the administrative departments, such as road transportation permits for itself and road transportation certificates for its vehicles. Unlicensed companies cannot provide public car service.

Though the cars employed by the tailored taxi service are from car rental companies, these companies are authorized to provide only the car and not chauffeur service. If they send drivers with their cars, it is illegal and such vehicles are "black cabs." In addition, some tailored service cars are actually private cars registered under car rentals. Such illegal operations should be cracked down on. Only by doing so can China maintain an orderly development of the taxi industry and safeguard the legal rights and interests of legitimate cabbies.

Con

Fu Weigang

Shanghai Institute of Finance and Law

I never expected to see these cities ban tailored car service at a time when such cellphone apps are thriving.

This is a new phenomenon in the car service market and emerged according to the market demand. Its popularity among citizens shows that passengers have diversified demands. I don't think it is right to simply ban it. The government should provide larger space for the new service, observe its effects and market influences, and then take suitable management measures to regulate its development.

China's taxi industry is a monopoly and market demands do not work properly in resource allocation, leading to an insufficient number of taxis on the road. That's why many people cannot get cabs during rush hours. The emergence of the tailored taxi service can help break the monopoly and meet the diverse travel demands of passengers. More importantly, only competition can push the car service market to develop better.

 

 

 

 

Pros and Cons
-Can E-Shoppers Return Items Removed From Packaging?
-Should Tailored Car Service Be Banned?
-Should Degrees Be Deferred for Deals?
-Should Guangzhou Newcomers Register Within 72 Hours?
 
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