Taxi regulations might soon be loosened and by the end of the year, bigger cars might be allowed to be registered as taxis, the Ministry of Transportation and Communications said.
The issue was first brought up at a public hearing held earlier this month by Democratic Progressive Party lawmakers Chao Cheng-yu (趙正宇), Cheng Yun-peng (鄭運鵬) and Cheng Pao-ching (鄭寶清).
According to the legislators, Uber Technologies Inc’s investment in Taiwan has shaken up the taxi industry, as Uber drivers offered newer and larger cars that were able to transport more luggage while offering cheaper rates.
The ministry initially sought to oust Uber from the nation and succeeded for a short while. The ministry in February ordered Uber Taiwan to halt its operations and imposed NT$232.1 million (US$7.63 million) in fines on the company.
However, now that the company has resumed operations after a brief suspension, the ministry has turned to measures that would help local taxi drivers compete with Uber.
According to legislators, the measures included a call for the ministry to relax regulations on the cars allowed to be registered as taxis, which restrict taxi drivers to using vehicles with four doors.
The ministry said it hoped to complete the amendment by October.
The ministry said it would also consider allowing taxi drivers to carry advertisements on both sides of their vehicles to augment their incomes, on the condition that such advertisements would not affect the public’s ability to recognize vehicles as taxis.
The ministry said it would not impose too many restrictions on advertisement placement, but added that the front hood, trunk door and top of the vehicle would need to be painted in the designated shade of yellow.
The news has prompted speculation as to which automaker would benefit most from the relaxation of rules, as the Toyota Wish is highly popular among taxi service providers.
However, car dealers said that the market is limited and dealers would not necessarily introduce discount programs for certain cars, adding that dealers estimated they would at most see about 10,000 car replacements.
There are about 87,000 taxis in Taiwan, sources at car dealerships said.
Car prices and fuel efficiency are probably the two most important concerns for taxi drivers, the sources said.
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