Research On The Franchise System Of Taxi Industry In China

In our impressions, taxis are always regarded as the freest group because theyare driven across every street of the city freely. The free rotation of the wheels of taxiprovides a convenient and economical way of transport, as well as represents theuniqueness of the landscape of a city. In China, however, the rotation of the wheelsof taxis is not as free as it seems. In addition to the restrictions of administrativeregion, roads and other physical factors, it is also under the control of “the tangiblehand” of our government. Franchise system of taxi industry is the starting point andat the core of “the tangible hand” of regulating taxi industry. Therefore, it is nowonder that many scholars criticized the franchise system of taxi industry whencontradictions and problems of taxi industry are emerging and intensifying. Theacademic circle had a heated controversy on the legitimacy of establishment offranchise system of taxi industry. In my paper, from the view of jurisprudence, I firstdiscuss the legitimacy of franchise system of taxi industry and analysis the problemsof concrete construction of franchise system of taxi industry, then I seek theappropriate remedies and propose relevant improving suggestions to solve the aboveproblems.This thesis is made up of three parts. The first part starts with the controversy ofthe academic circle on the legitimacy of franchise system of taxi industry. In order toanalyze the issue more clearly, I divide this issue into two questions, which areexplored one by one. Firstly, according to the provision of the AdministrativeLicensing Law, which relating to the principle of setting administrative license, Iaffirm that the taxi industry should set administrative license. Secondly, I utilize thecomparing analysis method to explain the difference of logical structure betweenordinary license and special license. Finally, I find that the logical structure of taxilicense is in accordance with the logic of special license. Based on the above analysis,I conclude that establishment of franchise system of taxi industry meets the legalrequirements. Based on the first part, the second part continues to explore another question:since the franchise system of taxi industry meets the legal requirements, why thereare still many problems in this industry. By analyzing and categorizing thedifferences and problems of the two modes of taxi franchise system, it is concludedthat the franchise system of taxi industry is not a wrong system by its nature. Thefundamental reason for the public denunciation of this theoretical system imputesblame to government’s failure to set reasonable boundaries to intervene.In the third part, it is suggested government take moderate intervention as theprerequisite to improve the franchise system of taxi industry. Specifically, a seven-point framework is presented in this thesis: the first is to diversify the form of marketparticipants; the second is to grant the franchise by a prize-cap auction; the third is toset fixed franchise term with coordination function; the fourth is to establish atransfer regulation under the moderate government intervention; the fifth is to buildan evaluation mechanism of credit in taxi market; the sixth is to improve taxiindustry association; the seventh is to construct the evaluation mechanism of taxifranchise system.