Research on City Taxi Industry Operation Reform Mode and Its Development Trend in an Era of Internet

Abstract

In order to explore the relationship between traditional taxi and online car-hailing and attempt to assess the development of taxi industry, the paper makes a literature review of taxi industry development from three specific dimension including time, content and management, conducts a case interview with taxi drivers and customers to investigate the reality information, and analyzes the relationship between traditional taxi and online car-hailing reasonably by using the game theory. The results show that the rapid development of the ride-hailing service have directly impacted the passenger flow of traditional taxi service, which has broken the traditional monopoly and replaced the traditional taxi with the dominant position. The two objects of taxi industry need to define their respective positioning, and provide corresponding services for different groups to form a good atmosphere of fair and healthy competition. The conclusion is drawn that the importance of market equilibrium in regard to the development of taxi industry is partially supported by these findings. The comprehensive reform system of the taxi industry is based on benign competition and orderly development should be constructed gradually. Finally, based on all the information, some practical suggestions have been made on the construction of comprehensive reform system.