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Beijing cabbies fear loss of business

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Beijing's decision to increase taxi fares has fueled fears among cabdrivers that it could lead to a slump in passengers.

City authorities will adjust tariffs in the next two months, with a hearing taking place to obtain advice from experts, taxi drivers and companies, and legislators.

Although the move is aimed at raising drivers' incomes, many cabbies fear it could result in fewer people taking cabs.

"There was an obvious slump when the pricing unit for each kilometer was raised in Beijing and it took a long time for the market to recover," said Li Guang, a 31-year-old driver for the Xinghe Taxi Co.

He said he hopes the authorities will take a possible slump in business into consideration when raising prices, and offer subsidies when necessary.

Jiang Mingsheng, 56, voiced similar concerns and said he hopes taxi companies will reduce administration fees in the months after prices are raised.

However, the cabbies' fears may be unfounded.

Chen Yanyan, a professor at Beijing University of Technology's Transport Research Center, predicted it will only take a short while for the market to adapt to the change.

"It's natural that the market will react when there is a price adjustment, but that will not affect demand in Beijing, and the experiences of other cities such as Shenzhen show that the period of recovery from the price change will be very short," she said.