Research On Metropolis Taxi Industry Franchise Management

With the development of economy and people’s living standard, taxi has becomepassenger’s preferable choice because of its characteristics of convenient, fast, comfort,safety and accessibility. But with the development of taxi industry, many problems arose,such as chaotic management, illegitimate labor contract, unclear property rights, andunreasonable distribution of profit. These problems are more complex in metropolises thanin medium-sized cities, so it is unwise to solve these problems only from the perspective ofeconomic efficiency. The development of taxi industry in big cities should consider theinterest of all related parties, the overall economy development of the city, as well as therational allocation of social resources and improvement of living environment. The ultimategoal of the taxi franchise rights management in metropolis should be adapt to the benignoperation of the city. So-called benign operation means the taxi traffic development shouldnot only be adapted with the economic development, but also with the transportationdemand of special groups.With the theory of transportation economics and regulatory economics theory as afoundation, the present situation and the trend of the public transportation as a backgroundand the existing research results as a basis, this paper uses the methods of comparison,quantitative analysis and qualitative analysis to deeply research the taxi franchisemanagement in metropolis. In view of the present situation and the problems of taxiindustry in metropolis, this paper argues that all problems are attributed to the resource--the taxi franchise. Through learning from the franchise management models from foreigntaxi industry. After compared the quality of technical and economic indicators, resourceconsumption, environmental pollution between taxi and on the city taxi and the city trafficto other modes of and other vehicles, this paper made the new position on function of thetaxi industry. Taking the granting entity, the granting pattern and the period of taxi franchisein metropolis subject as the starting point, this paper argues that metropolitan taxi should bepositioned as a supplement of the urban public transport and meet the transportation need of special groups. Based on this position, the grant subject should be the corporation with bothvehicle property and operation right and establishing modern corporate system full ofinterests, rights and responsibilities. The grant franchises should take the way of servicequality tender in order to prevent inflated prices of auction. The period of franchise shouldremain consistent with the vehicle replacement cycle instead of unlimited. Strictgovernment control measures should be taken in taxi industry. Finally, this paper takesShenzhen city as an example, combining the current situation of taxi industry in Shenzhenand made the reform for franchise management model.