With petrol getting more expensive, Shenyang Traffic Administration Authority recommends that taxi drivers should charge an additional fee.

To support the recommendation, the watchdog reasons that taxi drivers’ interests may be undermined by the current, rather low charge for their services, which may cause traffic jams.

In this writer’s opinion, this argument is problematic for several reasons.

Of course it’s rational to raise the fare in some way, in order to protect the interests of taxi drivers, whose work is essential to the running of modern cities. But why should we passengers shoulder the bill, instead of the taxi companies that take away two thirds of drivers’ pay?

Industry insiders say that among the many causes behind the taxi industry’s current dilemma, which include high petrol prices, taxi industry management, and competition from illegal “black cabs,” the most important one of all is conflict between taxi companies and taxi drivers themselves.

Drivers can usually earn around RMB 6000 per month in Shenyang, but they have to pay at least RMB 3000 to their companies as “rental fees.” That means his net profit is around RMB 1500 to 2000 after paying petrol and automobile maintenance, which is rarely enough to make a living.

The soaring petrol prices add salt to these wounds, but the “rental fees” obviously play a bigger role in hurting their interests.

In order to find a solution that suits everyone, local authorities should start to investigate whether taxi companies exploit drivers, and how they decide the amount charged by these new “rental fees.”

As it stands, the system of deciding and charging these fees is not well reasoned. To make it better, the traffic administration bureau should reshape its taxi managing model to meet the demands of drivers, passengers and companies alike.

By Tiger Wu