Research On Regulation Failure Of Tianjin Taxi Industry

With the development of Tianjin’s economy, people’s demand of taking taxi has increased greatly, followed by increasing of their work and life transportation demand. However, due to the taxi market access and quantity control, the number of Tianjin operation taxi has been maintained at around 31939 vehicles since 2000 to 2012 for 13 consecutive years. The gap between supply and demand results in some unsatisfactory phenomenon. Especially in inclement weather, at peak times, at stations and airports or other special region, people take taxi difficultly. Taxi drivers’qualities are different, they selectively pick passengers or refuse to carry because they have stable market shares, their service quality is unrelated to income. Illegal taxis, that is, taxi which don’t have legal operating license, appears in metro station, railway station and shopping malls nearby, influencing the normal taxi market order seriously. Taxi operating price is formulated by passenger management department, but negotiating price between driver and passenger occurs frequently. The problems mentioned above are associated with government regulation without exception. The question is that whether the government regulation policies is reasonable or not, and if it’s unreasonable we need to find improvement measures.This paper starts with summarizing of government regulation theory, including the basic theory, theoretical basis for the implementation of government regulation of the taxi industry and the initial analysis of regulation failure. Then article estimates reasonable demand quantity of Tianjin taxi through GDP and other factors. The conclusion is the supply is short. Then it analyzes the relevance between the consequence of scarcity and above-mentioned problems which deviated from regulation policies. There are three regulation types including entry regulation, quantity regulation and price regulation. Then this paper emphasizes on the relationship between the reason, rationality and result of three regulation policies and their implementation. Then we get the conclusion that regulation failure including the basis and implementation themselves is main reason of the problems such as taking taxi difficultly. The reform of regulation policies and diversity of public transportation is the solution. The existing problem of Tianjin taxi market can be effectively solved by these measures and the industry will develop healthy.