Abstract:There is a direct relation between the government's control and taxi market's problem/conflict. The government's control results in the potential monopoly and more capital investment or speculation, then the investment and service chain has been prolonged and relevant contradiction has increased. Among these contradictions and conflicts, the taxi industry comes the first, but this does not mean the taxi enterprises should be disappeared. The taxi companies have their own value, but the government should have an effective monitoring system and regulation and popularize more standard taxi companies by economic ways. Furthermore, the government should also regulate the excess capital investment and speculation by administrative and economic ways to make the investment and service chain more reasonable.