Outcry in Beijing as transport authorities ban Uber-like services

Media commentators and online users are waging a war against Beijing’s new transport policy after officials launched a campaign to crack down on paid transport services booked via mobile apps or online without proper taxicab licenses.

In a commentary published today, state-backed People’s Daily blamed insufficient taxi supplies and the poor service provided by the taxi industry for the growing popularity of “unlicensed taxi services”.

“The population is growing rapidly in many cities, but the number of taxis barely increases,” the newspaper said.

In an earlier commentary, the newspaper argued the business model of taxi companies were responsible for the lack of taxis in the city.

Although Chinese law allows both corporations and individuals to be licensed taxi operators, in many cities, only taxi companies are able to obtain licensed taxi number plates – and they can make profits by simply collecting hefty management fees from the drivers.

“The majority of taxi plates are assigned to taxi companies… [who] make considerable profits by just collecting the management fees. The drivers are thus placed at a disadvantaged position,” the newspaper said.