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Harvey Kong

Singapore-based ride-hailing service Tada has said it is working to provide insurance and legal protection for its drivers and passengers, days after it broke into the Hong Kong market and started competing with Uber.
In an interview with the Post, the company, which began operations in Hong Kong on Thursday through a beta launch, said that offering services to city commuters was an “inevitable choice”, even if it was illegal.
“The safety and welfare [of our riders and drivers] is our top priority,” Tada regional general manager Jonathan Chua said on Friday.
“We always aim to offer the same level of comfort and assurance in the market to our passengers and drivers, with that being said, the discussions with other stakeholders are in progress and potentially revealing too much information at this time is not ideal.”
Chua said the company was coming up with legal and insurance protections for its drivers and passengers in the city.
Tada is competing head-on with ride-hailing giant Uber, which has been operating in Hong Kong for a decade.
The government is set to introduce regulations to govern ride-hailing platform operators next year. Until then, Tada and Uber drivers are vulnerable to law enforcement risks as ride-hailing services are currently unregulated.
It is deemed illegal for drivers of private vehicles to transport paid passengers without a hire-car permit.
The existing hire-car permit quota is capped at 1,500, with 1,115 of them being issued by 2021.
Uber and Uber Taxi have more than 216,000 registered drivers. Uber Taxi is deemed legal as its vehicles hold the necessary permits.

A first offence by a person who uses a motor vehicle for hire or reward without a hire-car permit carries a maximum penalty of a HK$10,000 (US$1,280) fine and six months in prison. Later convictions can lead to a year behind bars and a HK$25,000 fine.
In a previous case in which 22 Uber drivers were arrested on suspicion of driving without a hire-car permit and third-party insurance in 2017, the platform said it would provide them with help that included legal support.
The ride-sharing giant’s website also said that all trips booked through its app in Hong Kong were insured in compliance with the Hong Kong Motor Vehicles Insurance (Third Party Risks) Ordinance.
Tada CEO Sean Kim addressed why the firm had decided to offer services in the city that might be against the law if these vehicles did not have a hire-car permit, saying it was an “inevitable choice”.
When asked by the Post, a driver who is registered with Tada said on Thursday that he did not possess a hire-car permit.
Kim said: “We need to build supply and demand, so that is why we are not in a position to be selective.”
He noted that providing the full suite of services under the company’s platform would also allow it to further understand the dynamics of the Hong Kong market.
Citing data he received on Tada’s operation in Hong Kong so far, Kim said he was “shocked” to discover that 60 per cent of their customers decided to hire taxis while 40 per cent opted for private vehicles.
Kim said the company aimed to be a “meaningful” competitor in the market, adding he hoped to attain a market share of at least 20 per cent.
He said a key strategy to gain a foothold in the city revolved around charging no commissions, which would allow the company to provide more reasonable fares for passengers and help drivers to increase their earnings.
“That is the best weapon we have and we have proven with this model that we can grow, we have set our business structure, cost structure and operation based on this zero commission model,” he said.
Addressing the company’s service coverage, which is limited to Hong Kong Island, Kowloon and the airport, Kim said the firm wanted to further expand by the second quarter of 2025.
He said the platform had no fixed timeline for a full launch in the city.
“I hope some of the participants in the industry and the market can give us a try, we will do our best and we are always trying to do what we say,” Kim said.
“We hope and we are sure we can bring more healthy competition so that eventually everyone can benefit.”


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Hong Kong transport

Tada working to provide insurance for Hong Kong drivers, passengers

Tada is looking to achieve a market share of at least 20 per cent in Hong Kong. Photo: May Tse

Tada CEO Sean Kim (left) and regional general manager Jonathan Chua. Photo: Jonathan Wong

Singapore’s Tada launches in Hong Kong, driving fresh competition with Uber

Tada will allow customers to pay by cash or credit card in its beta launch covering Hong Kong Island, Kowloon and the airport. Photo: Tada

Tada CEO Sean Kim has said Hong Kong’s dynamic economy, dense population and strong demand for transport were key factors in choosing it as a location to set up operations. Photo: Handout

Tada in Hong Kong could cost less than Uber, but longer wait time

Lawmaker Gary Zhang and two Post reporters compare ride-hailing operators Tada and Uber in a test ride on Thursday. Photo: May Tse

Lawmaker Zhang has called for the government to speed up efforts to legalise and regulate ride-hailing operators such as Tada and Uber, to meet public demand. Photo: May Tse

News

Hong Kong

Transport

‘The safety and welfare [of our riders and drivers] is our top priority,’ Tada regional general manager Jonathan Chua says


‘The safety and welfare [of our riders and drivers] is our top priority,’ Tada regional general manager Jonathan Chua says.
