Mainland China on right track by laying groundwork for legalisation of online ride-hailing services
Hong Kong cannot escape what is a worldwide trend and must come up with answers on how old and new models of the taxi industry can coexist
The rise of the internet and smartphones has nurtured a growing demand for services that are just a click away. From grocery shopping to booking a taxi, everything can be done instantly online nowadays. The trend has brought convenience and comfort to customers. But it also poses challenges to conventional business models. The pressure to shake up the taxi industry is a case in point.
In a bold but right step forward, the central government has paved the way for the legalisation of Uber and other ride-hailing services by scrapping the 18-year-old taxi regulations on the mainland. The move has effectively given local authorities a free hand to introduce new players to the industry. Some cities have removed taxi franchise fees already.
The emergence of app-based limousine and motorbike services is as much a challenge to taxi operators as to governments the world over. With their easy-to-use and often cheaper services, Uber and other operators have effectively broken the monopoly of a staid industry. Customers’ feedback has been generally positive.
Over the years, taxi drivers have responded by taking to the streets. The latest one, in the capital city of Indonesia, erupted into a violent protest. The frustration is understandable, but the popularity of rival services makes a total crackdown impractical.