A SHANGHAI public hearing on a taxi fare increase has highlighted the plight of cab drivers working long hours, earning meager incomes, paying high rental fees to taxi companies and competing with unlicensed, private transport services booked by smartphone. Cabbies have staged strikes in several cities around China.

The Shanghai Transport Commision, in a report released on January 9, said city cabbies earn an average 6,555 yuan (US$1,058) a month, about 1,000 yuan higher than the average Shanghai wage. However, they generally put in much longer hours and get fewer holidays than other city workers.

The report also said the profits of Shanghai taxi companies are on the decline. One cab generates an average of 671 yuan net profit per month for a company, compared with 1,022 yuan three years ago.