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Abstract
Nowadays， sharing economy-based companies are gradually increasing their influence on our daily lives： we hire drivers on apps like Didi and Uber to pick us up instead of waiting for taxis. As P2P companies increase their influence in the public services sector， the government rationally diverts more of its attention towards regulating the quality and service of these companies.
In this paper， wefirstly examine how different government regulations affect theride-hailingindustry in Beijing and New York. More importantly， our research mainly focuses on the interconnectedness between government policies， ride-hailing company’s management team， drivers， and the consumers of rides-for-hire services.
In order to paint a fuller picture of the success of the ride-hailing industry in large cities， questionnaires on the ride-hailing consumers and drivers in Beijing are carried out. At the same time， we delve deep into the scholarly studies and articles that also investigate the picture of ride-hailing industries in the past 10 years.
We realize that government policies have a direct impact on the ride-sharing company as the imposed regulations will either assist or limit the expansion of the ride-sharing industry. It’s crucial that these regulations can help to maintain a balance between taxi and ride-hailing market， providing satisfying service to customers.
Policies
Beijing’s new policy established in 2017/05/21 stated that only Beijing cars and drivers are allowed in the ride-hailing business. However， many ride-sharing cars and drivers in Beijing are from outer provinces. Consequently， companies are losing valuable employees， simultaneously， drivers are losing their jobs and leaving the market. Therefore， the average price of ride-share cars increases substantially. The government implemented this policy in order to revitalize the taxi-market. In the long-term， this policy also aims to increase the quality of ridesharing cars， drivers， and services while decreasing the number of poor， unsatisfactory services. Xu Kang Ming， an expert from China’s ministry of transportation， believes thatthe use of new regulation can create a fair market overall.” Here， Xu presents the idea that the government’s objective to create a balanced rides for transprotation system that benefits the whole market. Therefore， both taxi and ride-hailing market can grow positively in the near future.
The City Council of New York is planning to put forward a new proposal for a yearlong cap on for-hire vehicle licenses as the number of cars in the street increased substantially， which is directly resulted from development of for-hire vehicles such as Uber and Lyft， prompting growing alarm over congestion and low driver wages. According to the report by Bruce Schaller in 2017， ride-hailing vehicles and yellow taxis were empty a third of the time in Manhattan’s central district where congestion problems usually take place. （Serious efficiency problem） Local people who support the introduction of this legislation are saying that Uber brought negative change in the transportation industry. For example， Six professional drivers， including 3 taxi drivers， have commit suicide for their financial distress from the changing transportation market. On the contrary， this policy also benefit many people， such as people who have no access to public transit and black passengers as they can hardly get a yellow taxi cab in New York .