Hong Kong failing to take up the challenge of ride-hailing services
- The scrapping of a plan for a premium taxi service app means Hong Kong will remain as one of the few major cities without a legal ride-hailing service. But if introducing competition to the taxi industry means more choice and better service, most customers would agree
Hongkongers learned this week they will continue to live in one of the few remaining major cities without a legal ride-hailing service. The government and the taxi industry have agreed to abandon a plan for a much-hyped premium taxi service app meant to be the industry’s answer to Uber, whose operations remain illegal in Hong Kong. The Transport and Housing Bureau and the industry said the decision took account of the economic situation. But neither the government nor the industry had shown any appetite for it.
The industry has failed to take up the challenge posed by Uber and other ride-hailing services for six years. The government took four years to roll out a proposal for the premium option within the existing system of taxi plate licences. Legislation for it has languished in Legco for more than a year.
Call to revamp Hong Kong ride-hailing market, upgrade taxi fleet
Taxi customers could be forgiven for feeling the industry – the owners as opposed to the drivers – is putting self-interest first, with scant regard for public sentiment or widespread economic uncertainty. In the same week it cited tough times for dumping the premium service plan, it unveiled a claim for a HK$6 (US 77 cents) rise in the minimum taxi fare. It tried to shift the blame to insurance companies, saying the rise was needed to recoup premium increases. Higher premiums usually reflect perception or assessment of increased risk. Perhaps the industry should address that before asking the government to agree to passing on the cost.
Twenty-four Uber drivers recently lost their appeals against convictions for carrying passengers for hire or reward without a permit. Uber retains a loyal following largely because of the poor image of the taxi industry amid complaints about shoddy service and uncivil and unscrupulous drivers.
Both the industry and Uber welcomed the decision to shelve the premium taxi plan, with the Hong Kong Taxi Council, an alliance of 42 groups, calling on the government to put the focus back on upgrading the existing pool of more than 18,000 taxis. Uber general manager for Hong Kong Estyn Chung hoped the industry and the government could now come together to find a “win-win solution”. If that means introducing competition to produce more choice and better service, most taxi customers would agree.
