Beijing will raise taxi fares from Monday in a bid to improve drivers' income and address complaints about poor service and cab shortages during peak times.

The starting fare will increase from 10 to 13 yuan ($1.60 to $2.11) for the first 3 kilometers, and the fare per subsequent kilometer will go from 2 to 2.3 yuan, according to the much-debated plan by the Beijing Development and Reform Commission.

The reservation fee is 6 yuan when passengers book four hours in advance and 5 yuan within four hours, while the fuel surcharge is 1 yuan per ride.