Some entrepreneurs are tackling problems plaguing the taxi industry by trying to find new ways to save time for passengers and increase revenue for cabbies.

Applications have been developed for smartphones, directing users to locate taxis, with the ByMe Taxi program by Beijing Staroud Technologies Ltd being one of the forerunners.

In March 2012, the company's CEO Li Cong moved house and had to take a taxi to and from the office. He found taxis rarely showed up in morning and afternoon rush hours, but when he walked on the streets, quite a few were available.