The proposal to raise taxi fares in Beijing has drawn public resentment against taxi companies. For a long time, these companies have been seen as the "root of all evil," resulting in bad services and low salaries for taxi drivers.

There is a public notion that taxi companies are making huge profits, acting as "exploiters" of taxi drivers and "predators" of passengers. The heavily criticized taxi companies have also dragged the government into the mire.

Is it true that taxi companies are making massive profits? This question is hard to answer, because there is no standard to refer to. Taxi companies deny such accusations, claiming that the annually increasing costs of taxi operation puts more of a burden on themselves and making it impossible to lower rental fees.

But the public's argument makes sense as well. China's taxi industry is not a fully competitive one. Operating rights have never been distributed through open tenders, making it a monopolized industry.

Commonsense tells us that rental fees are the main source of income for taxi companies, whose so-called "massive profits" cannot be sustained without a rise in these fees. But the crux lies in the lack of transparency in the way taxi companies operate and the lack of credibility of the government, which is supposed to make the final decision.

What's worse, taxis have broad contact with the public, making every whining driver an amplifier of such complaints and resentment. These drivers gain massive amounts of sympathy from the public. The blame has always been placed on taxi companies and the government.

It is probably the only road available to the taxi industry in major Chinese cities, further distinguishing taxi companies from ordinary for-profit business.

The Chinese taxi industry plays a significant role in connecting numerous households, which makes it part of the "public transportation" system.  That is also why a public hearing has to be held if taxi fares are to be raised. Therefore, public opinions have to be integrated into the discussion on how taxi companies should be reformed and how profitable they are allowed to be.

If the taxi industry continues its path to providing public-oriented services and remains under the current market entry regulations, taxi companies will inevitably become a non-profit service.  Besides a public-oriented taxi service, major cities should consider establishing fully marketized taxi companies, which will help layer the industry according to different demands.

But as of now, every time taxi fares rise, there will be a tangled fight. The consequences are always the same: customers are unsatisfied, as are the taxi drivers and taxi companies, and more tragically, the government has to clean the mess by using its broken public trust.