At noon on September 25 this year, Shao Changliang came to meet the reporter for an interview, still wearing pajamas and slippers. Shao’s fatigue was apparent, even under his sunglasses. "Sorry, I spent the whole night writing a complaint. I just got up," he explained. In early October, Shao filed a lawsuit against the Beijing Transportation Management Bureau (BTMB) for rejecting his application for an individual taxi license.
Currently, taxi businesses in the capital are in the hands of a few large companies, from which cab drivers must rent a car and purchase a license. In addition, they are obligated to pay their companies at least 4,000-5,000 yuan (US$483-603) in rental fees each month, while the latter is responsible for the management of drivers and paying insurance premiums for them.
Shao, 40, has been a taxi driver for 13 years. In 1996, he began to challenge the decade-long suspension of the individual operation of taxis, which has pertetuated a monopoly in the sector.
Shao professes to be airing opinions on behalf of taxi drivers, as he said that they tend to have little knowledge of the law. "Few people know me, but most taxi drivers know of me," he said.
"I know the effort of one person is limited. But now my efforts have already paid off. At least the problem has attracted the concern of high-ranking government officials and decision-making departments," Shao added.
Shao happily mentioned that Premier Wen Jiabao has brought up breaking up the taxi monopoly and that reform has been listed on the agenda of the Beijing Municipal Government. "The problem I raised has aroused public concern. As an ordinary taxi driver, I’m satisfied with the result," said Shao. "But so long as the problem is unresolved, it will be a sore on my heart."
Taxi Monopoly
Shao resigned his decade-long job at a government department and became a taxi driver in 1993.
From the late 1980s to the early 1990s taxi demand outweighed supply in Beijing. So, business was steady. To meet the rising demand from a more mobile populous, the municipal government encouraged individual taxi outfits. "At that time, it was easy to earn money. We worked roughly eight hours a day and earned about 6,000 yuan ($725) a month, which was three times the salary of a white collar worker at that time," Shao recalled. Shao even advised his wife, who had worked in his previous unit, to resign and cash in on the taxi sector as well.
"When we were both taxi drivers, we were prosperous and admired by neighbors," said Shao.
However the good time only lasted a few years. By 1993, the market was saturated with taxis and Shao’s patronage dropped. Statistics show that the number of taxi companies increased from 263 in 1990 to 1,085 in 1993, while the number of taxis rose from less than 15,000 to roughly 50,000. In response, the Beijing Taxi Management Bureau froze the taxi sector in 1994 by suspending the approval of new taxi companies and banning self-employed drivers.
In 1996, there was a flurry of mergers in the Beijing taxi industry. Several large corporations ended up holding the limited number of licenses that the municipal government granted, thus monopolizing the taxi industry. According to data from the Beijing Administration of Industry and Commerce and the National Bureau of Statistics, currently there are 333 registered taxi companies in the capital. Of this total, 17 large companies take up 80-90 percent of the market, with seven of them holding half the total market share.
Meanwhile, abuses of drivers began to take place. Some taxi companies charge drivers exorbitant prices for licenses. For instance, a car priced 60,000 yuan ($7,246) was sold for 150,000 yuan ($18,116) to a taxi driver.
An increasingly competitive taxi industry dug into Shao's wallet. He now drives 10 hours a day, though this violates regulation. Otherwise, he said, he could not afford the bloated rental fees. "Just before my wife divorced me, we drove day and night shifts, having no time off at all. We seldom saw each other, but we still had little income," said Shao. A dismal financial situation spurred Shao to personally investigate the problems of the taxi industry. "I’m unwilling to accept this position. To change it, we must break the improper monopoly of the taxi sector and strive for a fair competitive market," Shao said.
Fighting for a Chance
Over the long years of investigation, Shao learned much about policy and law. "I have become a sort of a scholar-driver," he said with a smile.
Shao began to write to relevant departments in 1997, expounding on the problems in the taxi industry. "I did it all by the law," Shao stressed.
His efforts did not accomplish what he had expected. Either his opinion was ignored or he was told nothing could be done.
Things began to change in 2002, when a reporter found out that Shao had delivered his suggestions on reforming the taxi industry to the Beijing Municipal People's Congress. Following Shao's clues, the reporter conducted an investigation on the taxi industry, publishing a long report.
The report received wide coverage in local media, making Shao somewhat of a celebrity.
Shao likens the monopoly in the taxi sector to a dam, and himself to explosives. "I will detonate the dam," Shao explained. He was just waiting for an opportunity, which finally came when the Law on Administrative Licensing was adopted on July 1 this year. According to the law, citizens can sue government departments. On the day the law took effect, Shao and three colleagues filed an application with the Beijing Transport Management Bureau for an individual taxi license. Thousands of taxi drivers soon followed suit.
As the four drivers expected, the bureau rejected their applications on July 12, citing a saturated industry and explaining that the bureau needs to regulate the number of taxis in operation.
Refusing to capitulate, Shao and his fellow drivers visited the bureau again three days later and requested a public hearing on the issue. That request also was rejected.
According to the Administrative Licensing Law, if the applicant requests a public hearing, relevant authorities must arrange it within 20 days of the application being filed and apprize applicants of the hearing.
"Their acts are against the law," said Shao.
Shao brought his lawsuit against the Beijing Transport Management Bureau on September 1. A court session has been scheduled for sometime within the next three months. "I cannot predict the result. I hope, at least, it can draw the attention of the decision-making department," Shao added.
'No Route of Retreat'
During his personal investigation and dealings with the transport authorities, Shao hasn’t had the time to drive his taxi, which has not only emptied his wallet but has also hurt his marriage. In 2002, Shao's wife wanted a divorce, saying that her husband “neglected the family and only took care of society."
"I understand her,” said Shao. "It's all because of what I’ve done. The cost is too high. I really regret it to some extent."
Sending his daughter to her grandmother's home after the divorce, Shao now lives alone in a single-story 20-square-meter house, which has a kitchen and two bedrooms.
"I have lived here for 20 years. Although I work from morning ‘til night, I can’t afford a new house. This house used to be 10 square meters. We expanded it after my daughter was born, though this violates rules," said Shao.
Since May, Shao has been dedicated to writing a report on breaking the monopoly in the taxi sector. He was invited to give a speech at a large rally sponsored by a non-governmental academic institution.
Shao expressed his fondness of driving cabs and reiterated his determination to use his right to challenge what he sees as an unfair system.
"My family is broken. I have no route for retreat. The only way is to advance and fight against this improper monopoly. I’m optimistic and confident that blessings are not far off."
(Beijing Review November 4, 2004)
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