Beijing cab fare hike in the cards

As hailing a cab becomes increasingly hard in Beijing, the clamour is growing for something to be done about the problem. Beijing authorities have drafted a plan that hopes to solve the problem in the long term. Part of the plan is a revision of fares that may be implemented following a public hearing on the matter.

Mr. Zhang is one of the 90,000 taxi drivers in Beijing. For him, the costs around operating his taxi are a major concern.

He said, "I share this cab with another driver. We take shifts every 24 hours. We earn roughly 3,000yuan ($460) per month after we have deducted the leasing cost to our taxi company."

Apart from the leasing fee he has to pay to the taxi company, fuel prices are always on his mind, every time he steps on the gas pedal. When asked why getting a cab is so hard in Beijing, Mr. Zhang says because working at peak hours is a "business at a loss".

He said, "Everything is more expensive than it was before, the high fuel prices are the main cost of my daily operation. The traffic jams are especially heavy during rush hours. So the waiting time plus the extra fuel burnt is just not worth it. We can barely break even. So we tend to not take passengers or stay indoors during that time."

In order to address the difficulties in hailing a cab and drivers' complaints over low income, Beijing municipal authorities have drafted a plan to revise the Taxi fee standards. And a public hearing in late May will propose the drafts to members of the public and cab drivers.

Li Hong, director of Fee Charge Mgmt. office of Beijing NDRC, said, "Practically, we think the hike in taxi fares is not that much. We think that in the long term, this will help to ease the pressure of hailing a cab in Beijing. And for passengers it will mean an improvement in public services."

According to the plan, the base fee for taking a taxi will go up from 10 yuan to 13 yuan to cover the initial 3 kilometres. The taxi fee per kilometer will rise to either 2.3 yuan or 2.6 yuan from the current 2 yuan after the initial 3 kilometres. The hike means that cab drivers like Mr. Zhang can earn up to 6,000 yuan per month.

Zhang said, "I'm happy to hear that the taxi fee will be revised. This way my income will go up, but I do worry that there will probably be less people taking a taxi."

His fears are echoed by some passengers.

A Beijing resident said, "My work place is quite close to my house. I normally prefer to take a cab to work because it's more comfortable than the subway. But if the taxi fee goes up, I think I might consider other transportation."

Since 2012, the taxi fuel surcharge has been adjusted four times based on oil price fluctuations. The price has affected both the cab drivers and general public. Beijing authorities believe an proposed changes to the taxi fare will make it easier for people to get a taxi in this city. But there are others who suggest that a more competitive market would solve the problem more effectively.