All fare rise cash set to benefit city cabbies
Print Edition
ALL the money generated from expected cab fare rises will benefit cabbies, city transport officials said yesterday.
This follows complaints from Shanghai taxi drivers that they are struggling to make ends meet and have to give too much to taxi companies.
A fare rise plan is expected to be issued soon, following a public hearing last month.
A favored option would see the flagdown price — currently 14 yuan (US$2.2) during the day and 18 yuan at night — rise by 1 yuan, with the subsequent rate also higher.
The Shanghai Transport Commission said it will work with taxi companies to ensure that at least 70 percent of the income from the fare rise goes straight into drivers’ pockets.
The remainder will be used to cover driver health checks and set up a bonus system for cabbies, plus improving the environment inside cars.
Nothing would go toward taxi company business costs.
The original plan would have seen 70 percent go to drivers and the remainder to companies to improve their service.
However, drivers were unconvinced by the plan, said to offer an extra 1.4 yuan per fare on average.
“I’m not sure yet whether we drivers will benefit from this fare rise,” Shanghai Haibo Taxi Co driver Chen Hui told Shanghai Daily.
“If the company raises the rent at the same time, there will be no benefit.”
“Instead of raising taxi fare, the authority should think about cutting the monthly rent for drivers,” Chen added.
Addressing this, the commission has said it will invite a third party auditing company to estimate taxi company costs so that a standard industry figure can be introduced.
However, this is unlikely to be in place by the time of the fare rise.
Taxi companies charge around 8,400 to 10,600 yuan rent from each cab every month. Drivers often share cabs.
Companies say this covers drivers’ social insurance, tax, car maintenance, plus their own costs.
According to a report by the commission last month, one Shanghai cab generates an average of 671 yuan net profit per month for a company.
It also said that a Shanghai cabbie on average earns 6,555 yuan a month.
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