THE Central Government promised Thursday to overhaul the country’s taxi industry following strikes by drivers in at least seven major cities over complaints about low pay, high charges imposed by taxi companies and competition from ride-hailing apps.

    The Ministry of Transportation said it will take unspecified steps to improve pricing and “rights protection” mechanisms and to integrate ride-hailing apps and other new technologies into the industry.

    Strikes were reported last week in cities including Nanjing in the east, Chengdu in the west and Shenyang in the northeast.

    In a sign of shifting official attitudes, the government’s China News Service on Thursday cited experts who said taxi companies hurt drivers by charging up to 9,000 yuan (US$1,450) per month for use of a cab. The report appeared on websites of numerous Chinese news outlets.

    Drivers cited by domestic media also complained about competition from private drivers who use ride-hailing apps such as Uber. The Ministry of Transportation announced a ban the week before last on the use of such apps by drivers without taxi licenses.

    Taxi drivers have protested repeatedly in recent years over conditions in their industry. Most are treated as independent contractors without salary or other benefits.

    “While cab drivers are undoubtedly unhappy about the use of taxi apps, their fundamental grievance is and always has been with the cab companies and the contract system,” said Geoffrey Crothall of China Labor Bulletin, a Hong Kong-based research group, in a report last week.

    After deducting charges to taxi companies, many drivers make less than a factory worker, according to Crothall.

    In other moves to put more money into drivers’ pockets, the city government of Beijing on Thursday canceled a 1 yuan surcharge imposed each time a taxi is refueled. The Ministry of Transportation said the eastern city of Wuhu raised taxi fares by 1 yuan to 7 yuan for the first 2.5 kilometers.

    The People’s Daily warned Jan. 6 that the rising use of ride-hailing apps would force changes in the industry.

    “The current monopoly has long been criticized,” the newspaper said. “The large amount of money that must be handed to taxi companies will have to be gradually reduced.”(SD-Agencies)