Striking taxi drivers under a bridge in the suburbs of Hangzhou. (Photo : Reuters)
Shanghai city transport officials announced future taxi reforms on Sunday, after they met in response to complaints from the city's taxi drivers, who have complained that their wage rates are not high enough to survive on a regular basis.
The drivers claimed that they are struggling because the taxi companies they are beholden to expect too much money from them. A public hearing was held last month to tackle the issue and a fare rise is now planned for the near future.
One of the options, which is the most favored, would mean that the flagdown price for both day and night shifts will increase.
The Shanghai Transport Commission has made a commitment to work with taxi companies so that at least 70 percent of the extra money from the fare rise is diverted directly to drivers. Driver health checks and a bonus system are two of the areas that will be funded by the other 30 percent.
The announcement follows the industrial action that occurred in mid-January, when cab drivers in six provincial capital cities protested over a number of issues, such as long hours and smartphone applications for unlicensed private cars. The affected cities included Jinan, Shenyang and Nanjing, and they were part of what might have been China's largest-ever taxi-driver protest.
Shanghai is particularly relevant in China's taxi industry, as the country's drivers must work for companies like Shanghai-listed Dazhong Transportation Group Co. and Shanghai Qiangsheng Holding Co., because individual licenses were canceled in 1994.
High rental fees were addressed during the protests, as they can be as high as 800,000 yuan ($13,000). Drivers also complained in mid-January that they work long hours to offset the exorbitant rates, which compromises their health as well as the safety of their passengers.
However, Shanghai's taxi drivers are not yet convinced by the forecast delivered by the city's officials. Shanghai Haibo Taxi Co. driver Chen Hui told the Shanghai Daily publication: "Instead of raising taxi fare, the authority should think about cutting the monthly rent for drivers."
