Research On Government Regulation In Taxi Industry

The limits of government authority have been a long-lasting issue. In the history of western countries, the areas under government control have been alternatively increasing or decreasing, which is varying over time. Recently, the western countries start shifting their control from economics to society, resulting in less control in the economical area and more control in security, environment, health and so on, which are closely related to the society. Meanwhile, the ways and means of controlling are changing gradually, from forcing control to incentive control, which leaves room for the free development of the market and emphasizing the ability of market order to solve problems.The current market economy of china is evolved from its managed economy. Although the Chinese government reduced their centralized control over the economy and introduced some relevant policies to simplify the administrative approval procedures, they are still controlling some fields, for example the taxi industry. There are always some specific beliefs and theoretic basis behind the regulation policy. Whether the anticipate results of the government regulation are consistent with the original intention, whether regulation-based theories can be tested, whether the regulation policy keeps up with the information technology and economical structure; the government regulation are good at quickly solving the problems in a short term, while overlooking the consequences in a long term. All of these are worthy of our reflection. From the perspective of current situation, taxi industry has been added into a lot of new elements, for example taxi-calling software, personal cars and so on, which are changing the pattern of the traditional taxi industry. These are forcing the taxi industry to adopt the market principle and examining the government regulation.It is not completely nonsense to regulate the taxi industry, because it is associated with public interest and safety. However, how to regulate the taxi industry is a key issue. In 2015, reform of the taxi industry was mentioned in the economic reform of the national development and reform commission, and this reform was first carried out in Yiwu city, Zhejiang province, however, the effect of this reform wasn’t significant across the country. The original pattern of taxi industry is as rigid as iron, and the cost of the government regulation weighs more than the benefits it brought. The actual effect of the reform completely swayed from the original intention of reform. On the basis of appreciation of necessary government regulation to the taxi industry, this essay mainly focuses on proposing how to efficiently regulate the taxi industry for the government employing the relevant theories of government regulation and regulation experience of foreign countries.