| Government regulation is an effective means of overcoming market failures.In reality,however,government regulation does not always play an effective role.Rent seeking,information asymmetry and unreasonable policy making will cause government regulation failures.The taxi industry plays a special and important role in urban development.In order to regulate the development of taxi industry,the government takes regulatory measures to control market access,quantity,price,quality of service and security of urban taxis.However,during the development process of taxi industry,government regulation failures caused many social problems.The rapid development of the Internet has had a tremendous impact on the social economy,making that the production efficiency has been improved,transaction cost has been reduced,the information exchange is more smooth,and the resource allocation is more effective.Under the background of "Internet +",Internet-hire-vehicle has enormous impact on traditional cruising taxi industry.Meanwhile,as an emerging industry,how to regulate the Internet-hire-vehicle market also caused social controversy.Through the study of Hangzhou taxi industry system reform,we can find that the developing of the Internet brings a good opportunity for taxi industry to reform.The government should seize this opportunity and change regulatory policies to make the traditional taxi industry and the Internet-hire-vehicle market more healthy.The first way is to deregulate quantity and price control to adjust to the interest relation and encouraging the usage of internet technology to upgrade the industry.The second way is exploring specific regulation policy of internet-hire-vehicle and taking platform as a main way to put internet-hire-vehicle into regulation framework.At present.there still exists a big problem of how to regulate appropriately.In order to promote the healthy development of the taxi industry,government should make their best to solve the problem of regulation in deregulation. |