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Summary of IOT Publications

Title A study on regulatory policy and consumer protection of new taxi business model
Dept Transportation Operations and Management Division
Year 2018
Month 6
Price 300
Summary The advent and popularization of mobile networks, smartphones and digital economy are impacting traditional business models. Faced with the trend of decentralized platform-based economy, taxi businesses that were once fleet-based are increasingly using digitized methods to pair drivers with customers. However, as the speed at which the internet technology and sharing-based economy develop at is far more rapid than the amendment of accompanying regulations or legislatures, there are often periods of legal confusions and disputes before newer legislatures were introduced for the emerging service models, in which management of the emerging service model is often ineffectively implemented.

Taxi dispatch and customer pairing services are deeply intertwined with consumer’s personal freedom and safety issues. Taxi service operators are required by law to provide passenger’s liability insurance, adhere to regulations on taxi lights and cab labelling, disclosure of consumer information and protection of privacy information. Generally speaking, mild regulation of service model encourages innovation, while matters related to consumer rights should be strictly enforced. The consumer protection and regulatory policy models of new taxi businesses can be addressed by enhancing insurance policies, adjusting legislatures in response to emerging innovative service models, and better advocacy of passenger’s riding precautions. For amendment of existing legislatures, efforts should be made to concentrate and manage the pairing service platforms, relax the limitations on number of dispatched drivers, mandatory passenger’s liability insurance, clear delineations of liabilities of dispatch, pairing and drivers, and finally establish measures for consumer protection. Aside from legislature amendment, in order to address the consumer disputes derived from taxi dispatch or pairing services, the project has produced a draft to detail the items that should/should not be included in standard form service contracts, based on Article 17 of the Consumer Protection Act. This will not only provides advocacy to consumers, but also offer preventive protection. Research of legislature drafts and recommendations produced from this project will incur positive effects on business operators, employees and consumers, and may serve as policy references for the Ministry of Transportations and Communications.
Post date 2018-07-02
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