By Justine Lopez

Taxis are getting more and more difficult to hail in Shanghai because there are fewer people who are willing to drive them. It’s no doubt that the popularity of car-hailing apps (like Didi) has contributed to the issue. However, many drivers say that low income and residency complications are also major contributors, Shine reports. 

Last year, roughly 1,500 people took the driving exam. That number has dropped dramatically from 2009, when over 10,000 people took the exam. 

Haibo, one of Shanghai's biggest taxi companies, reported that roughly one quarter of its cars have remained unused in the past year because there’s no one to drive them. Qiangsheng, another major player in the city’s cab industry, has experienced similar issues. 

It’s not only the rise of car-hailing apps that are responsible for the shortage of traditional taxis in Shanghai. Residency permits and low wages are also contributing to the issue. 

Drivers must possess a hukou (or residency permit) in order to legally get a license and drive a taxi in Shanghai. But because taxi drivers have such a low income, many Shanghai residents no longer want to do the job. 

The Shanghai Transportation Commission addressed the issue this week and announced that given the decline in the number of taxi drivers in Shanghai, the commission might consider allowing non-hukou holders to obtain licenses in the city. 

However, no final decision has been made. 

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