My Take | Why there is no need to legalise Uber

Uber has many militant supporters, but our government is unlikely to legalise ride-hailing services any time soon. The real question is: does it matter for customers?

Critics have long rounded on the government for protecting the taxi cartel and refusing to allow competition. Uber is tremendously good at turning loyal riders into a political support base to exert pressure on regulators worldwide, not just in Hong Kong. But while its local fans vent their anger, they may consider why they can still order, as quickly as ever, an Uber ride at their fingertip.

In reality, Uber is a bit like prostitution in Hong Kong – it’s neither legal nor illegal. And that’s how the government likes it.

Bigger fines ‘not enough to crack down on Uber in Hong Kong’

When Uber first reached Hong Kong, the government actually bought into the sharing-economy hype; InvestHK at one point showcased the San Francisco-based transport company in promoting the city’s economy.

It’s true the city’s taxi lobby is powerful. But transport officials were not initially against introducing a bit of competition. Even after they face increasing pressure from the taxi trade and their supporters in the legislature, they continue to tolerate the company.

The police, though, carry out periodic crackdowns. It’s a bit like going after the drug mules while tolerating the drug lords.

Last July, 28 Uber drivers were convicted and fined. Subsequently, five other drivers were fined HK$10,000 (US$1,275) each and banned from the road for a year.