The Developmental Stratagem Of Guangzhou LSF Taxi Co,Ltd.

At the end of 1995, in order to develop the taxi market, Guangzhou government decided to issue 1200 permanent taxi licences by bidding. The bidding was held on November 7, and Shenzhen GM company became the biggest winner in this bidding, winning 300 licences with the unit price of RMB66,000. On January 19, 1996, Guangzhou LSF Taxi Company was set up with the initial investment of 20,000,000. It began its business with the 300 Biaozhi type 505 taxi. After 10 years' effort, Guangzhou LSF Taxi company has developed into a big company with 585 taxi, over 1200 taxi drivers and a management team of 40 people. However, the risks, which used to hide behind, was becoming more and more obvious. The employees were of low benefit and compensation, low competency, and low morale; while the driver team provided bad service, not well disciplined and had high frequency of traffic accident. LSF has begun operation for many years but still didn't have its own office, and the bureaucracy and the...