For example, it is almost impossible for the government to determine how many taxies the market really needs.

The government has better options for breaking the impasse.

Due to the strict government control of the taxi market, it is virtually monopolized by a relatively small number of companies.

Studies have found that deregulation would result in higher industrial efficiency; that is, if the government allows more companies to operate and allows more individuals to become independent cab drivers, drivers would no longer have to pay such high contract fees to taxi companies and more operators would enter the sector to fill the supply gap.

Encouraging more companies and more independent taxi drivers would benefit both the drivers and the public. In the meantime, Beijing and other cities facing similar problems should implement the guidelines and assess the results.