Research On Theory For Taxicab Industry Regulation Based On Bi-level Constrains

As a "window" of the city’s foreign exchange, taxis are the on behalf of civilization andsocial image of the city, and play an irreplaceable role in the urban development. Taxiindustry in China had undergone considerable development since the reform and opening up,and basically adapted the taxis’ scale for Urban Development. Along with then incomeimprovement of urban residents, taxi traffic becomes one of the vital travel choices.Government has been strictly regulating taxi industry for health and stable development of thefields, in recent years, however, labor-management conflicts prominently protruded in taxiindustry and even more repeated occurrence the collective strike transported event. Taxiindustry had repeatedly been pushed to the cusp of public opinion to become one of social hotspots, which not only affected the normal life of the residents but also triggered thegovernment worries about social stability. The taxi industry development problem, whichcaused extensive discussion of the community, particularly reflected in the intense debate ongovernment regulation. Some mainstream view directed at the failure of governmentregulation and proposed to fully relax even lifting government regulation for the right track oftaxi development, which this article does not fully agree with.For health, sustained and stable development of taxi industry, this article focused on taxisanalysis based on series of theories including the basic theories of economics, transporteconomics, regulatory economics, applying combined methods of comparative research andsystematic studies, qualitative and quantitative research. The opinion, that the city taxisdevelopment should be integrated in the logic of the development of urban transport, andshould always remain on the foothold of obeying and service to meet the urban travel needs tothe maximum degree, was proposed. On the basis of industry attributes and positioningresearch, taking fully account of the dual constraints of the urban limited road transportationresources and consumers demands, the necessity of taxis regulation reached conclusion. Andthen the overall taxis regulation program is designed on base of the economic ties between theindustry stakeholders, as long as the associations to assist the Government to carry out the evaluation, which is the taxi governance model that the Government regulates taxi enterprises,enterprises controls vehicles and its operators, industry association assists the supervision ofthe quality of taxi industry. Development problems and regulation evolution of taxi industryare analyzed applying the theory constructed in this paper, which is application of theoreticalstudy.