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Hong Kong taxi trade in need of reform, competition watchdog says, while warning that proposed franchised cab scheme fails to meet public’s demands

  • Competition Commission proposes changes to scheme initiated to improve service in an industry that saw a record number of complaints in 2018
  • Watchdog says introducing competing e-hailing services could improve the quality of ordinary taxis

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Taxi groups say the government should introduce e-hailing services for existing cabs. Photo: David Wong

Hong Kong’s antitrust watchdog has called for wider reform of the taxi trade, warning that a government proposal for a premium franchised service in the industry will not bring competition or meet the public’s demands.

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The Competition Commission also proposed changes to the franchised taxi scheme, initiated by the government this year to improve service in an industry that saw a record number of complaints in 2018. Ride-hailing services such as Uber, which the government deems illegal, meanwhile, have gained in popularity.

“The commission agrees the government should address the ‘strong and growing public demand to enhance personalised and point-to-point public transport services’,” the watchdog said in a submission to the Legislative Council last Friday.

“However, the commission is of the view that the scheme, as currently proposed, may not be able to achieve that.”

Complaints about the taxi industry have risen. Photo: Xiaomei Chen
Complaints about the taxi industry have risen. Photo: Xiaomei Chen
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The government proposed introducing 600 franchised taxis under a trial scheme and granting three five-year franchises by open tender, with each allowing the operation of 200 vehicles.

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