Taxi flag-down rate rise in Shanghai given nod

A public hearing yesterday voted to raise the flag-down rate for Shanghai taxis to 15 yuan (US$2.40).

A group of 24 people, comprising cab drivers, lawmakers, experts and members of the public, discussed two options put forward last month by the Shanghai Transport Commission.

The option selected, by a vote of 17-7, will see the base price rise by 1 yuan to 15 yuan (including the 1 yuan fuel surcharge), with every kilometer after the first 3km costing 2.50 yuan, or 0.1 yuan more than at present.

The Shanghai Development and Reform Commission said earlier that the planned hike is designed to “increase cabbies’ incomes and rebuild the industry’s image.”

The alternative, rejected option would have kept the flag-down rate at 14 yuan, but increased the post-3km charge to 2.70 yuan.

Amid a groundswell of complaints of taxi drivers cherry-picking fares, the meeting said it felt the higher flag-down rate would encourage more of them to accept shorter journeys.

The transport authority said it will pass on the comments and observations made at the hearing to the municipal government, which will make the final decision.

Though it did not say when the new pricing system would come into effect, it said it will endeavor to ensure that the lion’s share of the increased revenue makes it way into the pockets of taxi drivers, whose incomes have risen more slowly than average in recent years.

Based on broad figures, the new pricing system will boost drivers’ incomes by 1.41 yuan per ride, the commission said.

Long hours

Shanghai cabbies make about 6,500 yuan per month. While this is about 1,000 yuan higher than the average, taxi drivers generally work much longer hours and get fewer holidays. “To earn the average, I have to work between 18 and 20 hours a day, three to four days a week,” said Zhang Lin, a driver for Shanghai Haibo Taxi Co, who took part in yesterday’s hearing.

“I earn about 50 yuan an hour, but after I’ve paid the company and bought fuel, it’s more like 20 yuan,” he said.

Most of the “customers” at the meeting said they accepted the need for a fare increase, though several experts and officials said that a price hike was not necessarily the best way to improve the industry.

“The discrepancy between supply and demand can’t be solved by higher fares,” said Tao Ailian, an official with the Shanghai Consumer Rights Protection Commission.

He said the transport commission should explore new opportunities to open up the market, while taxi companies should find ways to ensure a larger slice of their profits goes to the drivers.

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