The taxi trade is likely to win its fare-hike battle, as Hong Kong loses out again to vested interests
Mike Rowse says the sector’s hefty clout in key elections is why the latest fare increase request will be approved, in yet another reminder that innovation and technology often make for just empty talk in the city
Taxi drivers are a wonderful source of information and gossip. They spend much of the day listening to talk shows on the radio or discussing topical issues with passengers and so have an excellent feel for the public mood. Foreign correspondents visiting a city for the first time, or revisiting an old haunt after a long absence, find them a useful resource for quickly getting a handle on local sentiment.
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Despite the long and circuitous bureaucratic journey ahead, I am able to confidently forecast the outcome: there will be an increase; it will not be as much as the trade has sought; and, most of the benefit will accrue to taxi owners and relatively little to the drivers.
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Why will they not get everything they ask for? First, Transport Department and Transport and Housing Bureau officials must be seen to have acted to protect the public interest. The trade is aware of this, which is why they cushioned their opening shot with a wide margin, part of which can be easily conceded later. Then there is the matter of public acceptability. Amid all the talk of deflation and practically zero inflation, and the collapse of oil prices, one has to wonder what special part of the universe our taxis inhabit that has seen inflation in the order of 18 per cent.
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The key point is that this calculation is entirely independent of the fare shown on the meter. We know for a fact how this “tug of war” has worked out over the decades because taxi licences are now worth around HK$6.5 million for a vehicle costing about HK$300,000.
How will our hypothetical foreign correspondent feel when he gets in a taxi at the airport, asks the driver about competition from Uber and is told: “Don’t worry sir, we soon put a stop to that.”
The taxi fare saga is but one example. We can have a future built on innovation and technology, but only if we are prepared to confront vested interests when they stand in the way of progress.
Mike Rowse is the CEO of Treloar Enterprises and an adjunct professor at the Chinese University of Hong Kong. [email protected]