| Taxi trade is defined as public utility which should be regulated by government. So taxi trade always regulated by the way of government franchise to control the amount of taxi and service standards to optimize resource allocation. However, many problems lie in taxi trade and it is necessary to reform the governmental management mechanism on taxi trade. The current deficiencies are shown as the government has excessive power, governmental management is easy to be administrative monopoly, the taxi enterprises trend to over-exploit taxi drivers. And the strict control leads to difficulty to hire a taxi.It is urgent to reform the management mechanism of taxi trade to solve the problem above and protect the consumers’interests. Some cities have launched the reform but these efforts bring little effect, because the governmental power is not limited and the original contradiction is still there. With the comparative research on taxi trade management mechanism, other countries and regions adopt diversification management system to balance the interests between different parties. In these countries and regions, government management is the core element while public participation and democratic supervision are also play important role in it, so the management of taxi trade is a public issue, the government power is limited. This experience can be adopted by China in the taxi trade reform.In the reform of taxi trade, the frame of current system can be preserved, while some other measures should be taken as below:firstly, it is necessary to adopt diversification management system, allow the taxi drivers to get license with their own identity, so the administrative monopoly can be broken; secondly, in the release of governmental license, public participation and democratic supervision should play an important role to limit government power; thirdly, taxi trade management by government should follow the idea of indirect management and extent the function of taxi association. We do believe that with the efforts above, the deficiencies in current system can be eliminate and a new system can be established. |