·Legalization by reform and breaking the monopoly to help "special car"

Once the "special car" service is formed into a market, it will inevitably produce price competition with traditional taxis. Government management departments should adapt to changes and promote the reform of the taxi industry, but not to protect vested interests and set up roadblocks in the market.
In response to the “special car” service that appeared in the taxi market, many city traffic management departments have recently expressed their views as illegal operations. On the 8th, the Ministry of Communications said that the “special car” service has a positive effect on meeting the high quality, diversification and differential demand of the transportation market. The “special car” service should be based on the urban development and actual needs, and the traditional passenger transportation such as public transportation and taxi. Industry misplaced services, develop market segments, and implement differentiated operations. The Ministry of Communications also stated that all kinds of "special car" software companies should follow the rules of the transportation market and assume responsibility for prohibiting private car access to the platform.
Obviously, unlike the attitude of some local traffic control departments, the Ministry of Communications is generally affirmative of the "special car" service, only prohibiting private cars from participating. In general, this attitude of the Ministry of Communications is desirable. Just after the Ministry of Communications stated that the Beijing Municipal Transportation Commission said it was studying the placement of taxis to meet the needs of the public for high-end taxis, this is also a measure worth looking forward to.
At the same time, the Ministry of Communications also requested that the "special car" service be misplaced with traditional passenger taxis and implement differentiated operations. According to this line of thinking, the "special car" service will form a pattern of "well water does not make river water" with the traditional taxi service, and protect the market interests of traditional taxis. However, this may not work in the real market. In order to protect the interests of traditional taxis, it is advisable to stipulate that the price of "special car" must be higher than that of traditional taxis, and the price should be used to open the gap. However, the practice of the price of the existing taxi market by the government itself does not meet the requirements of the market to determine the price, is a target of market-oriented reform, and once the "special car" service forms a market, it will inevitably produce the price with the traditional taxi. competition.
It is forbidden to operate the private car access platform. It is also a kind of idea based on the convenience of government management, and it is not in line with the mechanism of free market development. Since last year, Premier Li Keqiang has spoken on many occasions to encourage public entrepreneurship. Therefore, for private cars that are willing to participate in the “special car” operation, in the long run, the government may require vehicles and drivers to obtain corresponding qualifications instead of Blocked outside the market. Allowing eligible private cars to be put into the lease operation will have a positive effect on facilitating passengers and increasing residents' income.
The fundamental problem in China's taxi market is that the monopoly generated by government control and the market attributes of the taxi market have created contradictions that are difficult to reconcile. The suppression of "special vehicles" by some city traffic control departments is essentially to protect monopoly interests. At present, the traditional taxi industry is indeed facing difficulties. The taxi drivers have been arrested at the beginning of the New Year in Nanjing, Qingdao and Shenyang, demanding a reduction in “money money”. However, in order to preserve the monopoly interests, the traffic control department is not willing to make profits to the drivers. Shanghai is even brewing taxi prices. The new technology will inevitably force the transformation of the traditional taxi industry, eventually breaking the current market monopoly and allowing consumers to get the market dividend generated by full competition. This positive effect has already emerged in the commercial sales and financial sectors. Government management departments must adapt to market changes and actively promote the reform of the taxi industry, and cannot set up roadblocks in the market in order to protect the needs of vested interests.

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