The Beijing
Transportation Bureau roamed airports, train stations and city's the commercial
district on Tuesday and Wednesday, seizing the vehicles of anyone using
taxi-hailing apps such as Didi Dache and Uber to find clients, reports
yicai.com, the website of the Shanghai-based China Business News.
A
smartphone screenshot circulating on the internet in China said "as of
15:00, around 200 vehicles have been confiscated. The target of law enforcement
today (Jan. 7) is 500 cars! Every vehicle at airports and train stations will
be checked. Everyone please be highly cautious and try not to find clients at
airports and train stations!"
The average
taxi using the hailing app earns around 10,000 yuan (US$1,600) a month,
according to the report. Zhang, one of the drivers, said he gets to keep 80% of
his fare for trips to the airport, with the remaining 20% going to the app service.
If he takes a fare by the same route during rush hour, the app does not charge
him any fee and doubles whatever he makes for the trip.
China's
domestic taxi-hailing apps, such as Didi Dache and Yongche, also pay an
additional 1-2,000 yuan (US$160-$325) a month to drivers depending on their
performance.
Zhang could
make up to 700 yuan (US$113) with the app in one morning. He only drives
part-time on every other day, a schedule he says is quite common among taxis in
the city working with the app. Some drive full-time for CEOs and big wigs, and
use the app to make money on the side.
Many of the
apps hire drivers with contracts, bypassing Chinese law which specifies that
leased vehicles cannot be provided for drivers. The apps have a car rental
company to register vehicles under their names and have a recruitment company
to hire the vehicle owners as drivers. The apps, the car rental company and the
recruitment firm and the driver then sign a joint contract.
The
transportation bureau in Beijing said the contract cannot bypass the laws and
the apps' services are illegal in nature, according to the report. The bureau
has stepped up its crackdown on vehicles and drivers using the apps since
January this year. The drivers of 47 vehicles found using the apps did not even
sign a contract with a car rental company.
Many people
still prefer to hail taxis through the apps due to the low number of taxis in
the country. Currently only 60% of the demand for taxis in China is being met
and around 20 million people a day have trouble finding one. However, legal
taxi drivers have been struggling with low pay since they have to pay taxi
companies a commission on top of their car maintenance and insurance.
Around 100
taxi drivers gathered in front of the square in Shenyang in northeast China's
Liaoning province on Jan. 4, calling on the government to ban the apps and
their drivers and reduce the fuel surcharge for legal taxi drivers.
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