Taxi Drivers Strike in China Over Uber, High Rental Rates
Vittorio Hernandez | | Jan 15, 2015 06:27 AM EST |
(Photo : Reuters) Top shot showing taxies parked by a street and police vans on a nearby bridge during a strike in Hangzhou, Zhejiang province August 1, 2011.
Regular taxi drivers in several Chinese cities went on strike Thursday to protest the competition from private car owners who rent their units using the ride-sharing app Uber. They complained that the situation has resulted in lower income, while they deal with soaring expenses.
Cities affected include Changchun, Chengdu in Sichuan Province, Nanchang in Jiangxi and Beijing.
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In Changchun, the cab drivers blocked the streets, which led to the police being called to remove the taxis and arrest the drivers. Some of the cab drivers posted on social media images of the strikes and the arrest, but censors immediately removed the photos.
To address the complaint of the drivers, Beijing last week banned private vehicles from using the ride-sharing apps to offer rides. These apps could be used only by licensed taxis, the Ministry of Transport announced on its website.
"While we encourage innovation, we prohibit private cars from using platforms to participate in the 'hired-car' business," it explained.
Since the release of the new policy, several Uber drivers have been fined in Shanghai and Chonqing, although the service is still available. Uber in China said it has not been contacted by authorities, according to its spokeswoman, Huang Min.
But Geoffrey Crothall of China Labor Bulletin said the problem of cab drivers go beyond the competition from Uber and Chinese apps backed by Alibaba and Tencent. The bigger problem is the very high rental fee that the taxi owners charge the drivers, leaving them with not much income to take home.
The rental rate is up to 9,000 yuan or $1,450 a month in Nanjing, reports CNN.
For a 14-hour workday, taxi driver Liu Xingyou estimates he earns only about 2,000 yuan or $325 a month, which is $70 below the national average, China Daily reports.
The strike was felt by commuters who found it difficult to get a ride to their destinations.
Tagstaxi strike, Uber
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