'Our core taxi service is still a cash cow. But we are looking to IT to improve our traditional business.' Last week, Qiangsheng's second and third-biggest shareholders sold off a combined 9.4 per cent stake in the company to Huipu High Technology, a firm linked to a technical institute in Wuhan.

Huipu will take three of the 14 seats on Qiangsheng's board and its role will be to help navigate the sometimes confusing route to high-technology.

'We are not experts in the IT area,' said Sun Yiyi, Qiangsheng's chief accountant.

'We are looking for a guide.' Shanghai Qiangsheng Taxi, which has domestic investor A shares listed on the Shanghai stock exchange, is controlled by the state-run Qiangsheng Group.

The group bought Beijing Talent, a company that offers computer security services, before selling it to the listed subsidiary.

Beijing Talent has won defence contracts linked to its expertise in warding off computer hackers, according to Mr Xu.

The Beijing company's security business got an added boost recently with the rapid spread of the Love Bug and Melissa computer viruses.

'We were looking for a hi-tech partner and we found it in Beijing Talent IT,' said Mr Xu.

Mr Xu believes the taxi business in Shanghai will get a boost when the mainland joins the World Trade Organisation. That long-anticipated move is likely to stimulate the city's economy, attracting local and overseas investors.

'More people will come to Shanghai and there will be more people with the money to take a taxi,' said Mr Xu.

But it will not be enough to offset a number of other negative factors in this city of 16 million people. Fuel costs have risen and more increases are expected.

Competition from other local taxi firms, such as Dazhong Transport, has intensified and the city's public-transport system is making dramatic improvements.

A second subway line has already opened and a light rail system is under construction.