Abstract: The difference between taxi and tailored taxi is the latter isn’t been supervised by government.We can analyze the reform of taxi and the feature of tailored taxi from the supervise of taxi.We explain the entry regulation of taxicab from the self-executing contract,then we built a principal-agent model including quantity control,supervision cost,multi-level,explain the effect of technical innovation on industry size from the optimal quantity , as well as the relation of quantity control and business model of domestic taxicab. And then we explained the rapid development of tailored taxi,analyzed the present regulation policy,offered a proposal that the regulation emphasis of tailored taxi should be increasing the opportunity costs of driver’s speculative action.