Taxi trade takes wrong Uber route again
- Owner of a Hong Kong cab company who planned to pair his fleet with the ride-hailing firm has now pulled out after threats were reportedly made to his family
Farsighted individuals who see the writing on the wall are often denounced as “traitors” by their own tribes. So it is with Edward Lau. The owner of Tin Shing Motors had planned to pair his taxi fleet with Uber but had to give up after threats were reportedly made to his family.
The partnership could have helped break the regulatory impasse in which the government, the taxi trade and the unlicensed ride-hailing service have been mired.
While the trade has so far successfully pressured the government against legalising Uber, the police haven’t been proactively targeting the company and its drivers, despite the occasional crackdowns. The taxi trade, long used to be being pampered by the government, has denounced Lau as “a traitor”. Insurers have reportedly threatened to not give him cover for his taxis.
Under the proposed partnership, Uber and Tin Shing would have split profits under “Uber Flash”. Apparently, there is a regulatory loophole that allows flexible fares to be negotiated between cabbies and passengers instead of following the fare meter so long as the riding service operates as something called “hire as a whole”.
Uber is under intense pressure as the government is set to increase penalties against its drivers. Unsurprisingly, 38 taxi groups have denounced the planned partnership and threatened to ostracise Lau and his company. The trade says Lau is a small operator and does not represent anyone.
Taxi firm owner scraps Uber partnership after ‘threats and potential boycott’
But that’s exactly the point. Why not use this as an experiment at compromise, instead of trying to wage constant warfare?
Now, Lau has given up. “In the wake of the opposition from the taxi industry, call centres, taxi application owners and an upcoming new taxi application (E Taxi),” he says, “I have decided to … cancel the partnership with Uber.”
Online ride-hailing is an irresistible service simply because many people want it, including tourists. The local taxi trade would be short-sighted to think its temporary victory could last or that the status quo of a poor service and monopoly could be maintained.
It’s not about caving to Uber, which may well not survive in Hong Kong. The government could get rid of it as a foreign company to placate local trade interests. But, eventually, such services from the mainland and even locally will come along and demand fair market access.
The trade needs to plan ahead. Lau was doing it for them and offering a way out for everyone. He should have been encouraged, not denounced.
