Lai Promises Taiwan Taxi Drivers More Opportunities as Government Eyes Bigger Role for Taxis
TAIPEI, Taiwan — Taiwan President Lai Ching-te has promised to create more business opportunities for taxi drivers by giving the industry a larger role in the country's transportation system—including a potential new function as a flexible complement to buses and other public transport.
Speaking Sunday, Sept. 6, at a Mid-Autumn? No—the event was a Ghost Festival banquet hosted by the Taipei Taxi Drivers' Union—Lai said the government wants to expand economic activity and find new ways for taxi drivers to secure more passengers and services.
The most significant proposal was his plan to consider taxis as “small yellow buses” and incorporate them more closely into Taiwan's overall transportation network.
The idea could eventually give taxi drivers additional opportunities beyond conventional passenger trips.
Lai's “small yellow bus” idea could open a new market
Lai argued that public transportation cannot meet every passenger's needs at every time or in every location.
That is where taxis could play a complementary role.
Under the concept outlined by the president, the Ministry of Transportation and Communications would consider taxis when planning the broader transportation system.
One potential area is long-term care, where taxis could help transport older people who need assistance getting to care services.
Importantly, the government has not yet announced a finalized nationwide taxi-as-public-transport program. Lai was describing the direction he wants future transportation planning to take, meaning implementation details, eligibility requirements and compensation arrangements would still need to be worked out.
Why the government wants more taxi business
Lai said improving taxi drivers' livelihoods starts with generating more demand.
His first priority, according to the Presidential Office, is continued economic development.
The president argued that when businesses expand, investment increases and more people travel for work and commercial activity, demand for taxis can also increase.
He specifically pointed to Taiwanese businesses returning from China.
According to the Presidential Office, 360 Taiwanese businesses had returned from China as of August, a development Lai said could contribute to additional business for taxi drivers as investment and commercial activity increase.
That makes the proposal broader than a transportation policy.
It is also being presented as part of Lai's effort to connect economic growth with workers' incomes.
A potential role in long-term care
The long-term-care angle may ultimately be one of the most important parts of the proposal.
Taiwan is facing a rapidly aging population, increasing demand for care services and a need to connect older people with medical and social-support networks.
Lai said taxis could be used for transportation under the long-term-care system, potentially allowing drivers to provide services that conventional buses cannot easily offer.
The proposal fits into a broader government effort to expand support for older people.
Lai said Taiwan now has more than 15,000 long-term-care service locations and more than 100,000 long-term-care workers serving older people and people with disabilities.
For taxi drivers, a formal role in this system could potentially mean another source of passengers and income.
But the exact operating model has yet to be announced.
This is not simply a promise of higher fares
The president's comments should not be interpreted as an immediate increase in taxi fares or a guaranteed income boost.
Instead, the strategy focuses on creating additional demand and expanding the services taxi drivers can provide.
That distinction is important.
Taiwan already has a large taxi industry, and the government has been examining ways to address regulatory and business pressures facing drivers.
In June, Taipei Times reported that the Ministry of Transportation and Communications had proposed regulatory changes aimed at protecting independent taxi operators from high affiliation fees charged by some taxi companies. The ministry had issued about 100,000 taxi operating licenses, with approximately 93,000 in use at the time.
Those reforms point to a broader challenge: giving drivers more opportunities is not only about creating passengers but also about ensuring that drivers can retain a reasonable share of their earnings.
The industry is already changing
Taiwan's taxi sector is also being reshaped by technology and app-based ride-hailing.
Digital booking platforms have changed how passengers find vehicles, while traditional taxi operators have had to adapt to new competition and changing customer expectations.
The government's proposed expansion into public transportation and long-term care could therefore give conventional taxi drivers another path to remain competitive.
Instead of relying entirely on street-hailing or ordinary point-to-point trips, drivers could eventually serve passengers through structured transportation programs.
However, how those services would be assigned, regulated and paid for remains a key question.
Lai also emphasized support for workers' families
During his remarks, Lai connected the taxi industry's future with his administration's broader social policies.
He highlighted childcare, education and long-term-care programs intended to reduce household expenses.
The president said Taiwan's government has continued expanding support for families, including childcare assistance and education subsidies.
He also said the government plans to begin a NT$5,000 monthly “0-to-18 growth allowance” per child next year, according to the Presidential Office.
These policies, Lai argued, are intended to ensure that economic growth translates into tangible benefits for working families.
A changing transportation system
The taxi proposal comes as Taiwan looks for more flexible ways to connect people with transportation.
Railways, metro systems and buses remain the backbone of urban transportation, but they cannot economically serve every neighborhood and every passenger at every hour.
Taxis can fill some of those gaps because they operate on demand and can provide door-to-door transportation.
That flexibility could become increasingly valuable as Taiwan's population ages.
For elderly passengers, particularly those who have difficulty reaching conventional bus stops or train stations, a properly integrated taxi service could provide a more accessible option.
But the details will determine whether drivers actually benefit
The biggest question now is how the “small yellow bus” concept would work in practice.
Will taxi drivers receive government-backed fares for long-term-care transportation?
Will special licenses or training be required?
Will drivers be assigned passengers through government systems or existing taxi platforms?
And most importantly, how much additional income would the new services actually generate?
None of those details has been finalized in the announcement.
That means drivers should view Lai's remarks as a policy direction rather than an immediate change to their working conditions.
The bigger picture
Lai's message to Taiwan's taxi drivers was ultimately straightforward: the government wants more people using taxis and wants taxis to become more deeply integrated into the country's transportation network.
That could create new opportunities in areas ranging from everyday transportation to long-term care.
The challenge will be turning the promise into a system that works for both passengers and drivers.
For Taiwan's taxi industry, the potential shift could be significant.
The taxi may no longer be viewed simply as a ride from Point A to Point B—it could become another piece of Taiwan's public transportation and long-term-care infrastructure.
And that raises the question that could determine whether Lai's promise becomes a real breakthrough for drivers:
When the new system is finally designed, how much of the new business will actually reach the people behind the wheel?