Nicholas Ning/ Shanghai Daily News

Transport authorities in Minhang District are doing a feasibility study on a plan to cut taxi fares in order to reduce the number of unlicensed cabs working in the area, Shanghai Daily reported.

The biggest taxi company working in the district says it is worried the measure will simply lead to a price war between licensed cab operators and unlicensed taxis, or "black cabs" as they are commonly referred to. The company says it can't win a price war with unlicensed cabs, as they have lower operating costs.