Taxi firm mulls salary reforms
Print Edition
SHANGHAI’S biggest taxi company Qiangsheng, which has been experimenting with online car hailing platform but with limited success, plans to carry out salary reforms of its drivers in an effort to rival DidiKuaidi and Uber.
A small number of selected Qiangsheng drivers on the hailing platform will have a new remuneration package, made up of basic salary, performance review and incentives. The drivers will not have to pay any rental fees, a big move as most taxi drivers in China pay a high rental fee every month.
In Shanghai, it can be as high as 5,000 yuan (US$782).
For other drivers, Qiangsheng plans to roll out an incentive-based service. They will be judged on safe driving and complaints from passengers.
“A driver can earn about 3,000 yuan extra in a year,” said Qing Weijun, a branch manager with the company.
Qiangsheng has about 20,000 drivers plying its fleet of 12,000 taxis in the city. The emergence of ride-hailing apps in the past two years has made matters worse for the conventional taxi industry, taxi companies said.
“Many private cars without business licenses have entered the industry. On an average, each of them take about four orders a day, thus hurting the regular taxi drivers,” said Chen Fang, the president of Qiangsheng.
“A taxi driver today earns about 100 yuan less in a day than usual. To make up for it, they are forced to extend their working hours.”
Going online is expected to bring some relief to them, at least in terms of rents.
The company said it plans to expand its fleet of vehicles on the app platform to 500 to 600 taxis by the end of next year. The immediate plans for early next year is to have the “London Taxis” on the app. They will be chauffeured by senior, experienced drivers to ensure a “gentlemanly-like service,” the company said.
Chen hopes to open the platform to rival taxi firms in the city.
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