Research On Access Regulation Of The Taxi Industry In China

From 1996 to 2003, it experienced seven years for the "Administrative Licensing Law" from drafting to formally introducing. The article 4 of "Administrative Licensing Law" emphasizes the principle of the rule of law. Taxi are closely related with the daily lives of citizens. From the mid-1990s, China’s taxi industry had experienced a process of rapid expansion of development. Under the guidance of the "Administrative Licensing Law", the taxi market franchise configured by the right to operate free of charge transferred to the compensatory transfer. In terms of access to the taxi industry, it also change from the open free of charge to quantitative controls. However, along with the development of the administrative control, in many cities of China, the taxi industry regulations appear some policies contrary to the "Administrative Licensing Law". And taxi industry in many of these cities also suffered a bottleneck:difficult to take a taxi, franchise license transfer price climbing, more and more black cars appearing in the market. Therefore, the access of the taxi industry should also be included in the scope of the rule of law, can not violate the provisions of the "Administrative Licensing Law".The first part of the article, I combed taxi industry statutes of Beijing, Shanghai, Wenzhou, Shenzhen and other major cities in China, and summed up the taxi market characterized by the following four points:First, China’s taxi industry access system is lead by local legislation; Second, the prevalence of quantitative controls; Third, the main ways of the taxi industry access is tender and auction; Finally, the duration of the taxi industry access qualifications have clear limits.In the second part, the general theory of administrative license were analyzed. First of all, I introduced the concept of administrative licensing and features. Administrative licensing can be divided into two parts of the administrative franchise and the common administrative permit. The franchise included these main features: First, the administrative franchise has transferability; Second, the administrative franchise can be charged; Third, the administrative franchise has quantitative restrictions, with exclusive; Fourth, the franchisors must accept special obligations; Fifth, executive authorities have greater discretion in administrative franchise; At last, the administrative franchise does not necessarily apply to the provisions of Article 8 and Article 69 of the "Administrative Licensing Law ". Furthermore, from the basis of the license, the field of application, the program, the admissibility criteria, the transfer of property, quantitative restrictions and ex-post regulatory requirements to compare the difference between the administrative franchise and the common administrative permit.The third part of the article, from the theoretical level, I analyzed the drawbacks of the franchise as the way of the taxi industry access. First of all, the taxi industry has a quasi-perfect competition and public resource properties, and does not match the characteristics of the franchise. Second, from a methodological individualism and social utilitarian, I analyzed the franchise is not a suitable way of the taxi industry access. Again, from the perspective of the principle of proportionality and the state of the principle of subsidiarity, the regulation of the franchise and regulatory objectives do not match. Finally, the franchise as the way of the taxi industry access is lack of the support of higher-level laws.The fourth part of the article, from a practical level I analyzed of the drawbacks of franchise as the way of the taxi industry access. For example, the franchise will lead to many problems in reality, such as monopoly. In monopoly, the taxi drivers’ interests will not be protected. Besides it will also lead to rent-seeking of power, and damage the interests of consumers.Finally, in the fifth part of the article, taking examples of London, Indianapolis, the Netherlands and New Zealand, I summed up the ways of the taxi industry access system and some of the successful experience in foreign countries. Furthermore, I suggested the taxi industry access should return to the common administrative permit. Alternative to the franchise, free competition must be paid attention in the taxi industry access reform. And a new taxi regulation system should be established according to the "Administrative Licensing Law".