Taxis in Hong Kong will speed up reform if Uber and other ride-hailing firms can compete legally
Mike Rowse says granting ride-hailing firms premium taxi licences will improve service in the city faster than lengthy consultations on demerits for drivers
The plan is being discussed by the Committee on Taxi Service Quality (yes, there really is such a body), and a public consultation will be held this year, with firm proposals being put to the Legislative Council in the first half of next year. If you believe that, I have nice bridge I can sell you.
Looking into my crystal ball, I can foresee that during the consultation phase, the scheme will be either so watered down that it is ineffective or that it will not survive scrutiny when it finally reaches Legco. And if by a miracle it does survive, it won’t be enforced so we will all be back to square one anyway.
As my companion on the Moscow trip is based in the United States, she has the Uber app on her phone and we made extensive use of it during our stay in Russia. I have written before about such services from a theoretical perspective, but this was my first experience of actual practice. It was a revelation.
Logging on to the website immediately shows the location of all accredited service providers in the vicinity, it takes only seconds to agree on a price and pickup arrangements.
Moreover, passengers know the details of the ride – passenger, driver identity, vehicle, time, date, place, etc – are all logged automatically in a location remote from the trip itself, so they have peace of mind. Personal security is a very important issue, especially when visiting a country with which you are unfamiliar. Payment is fixed in advance and usually by pre-registered credit card, so there is no opportunity to overcharge.
Misconduct by taxi drivers is a global phenomenon, but the presence in the market of reliable alternatives helps to minimise it. We had been warned in advance about Russian taxi drivers and sure enough at the airport and outside every railway station, men in leather jackets and dark glasses were busy touting for business. The app meant we were no longer at their mercy.
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So here is my suggestion for our transport authorities and the taxi committee: please do not waste our time and your effort on pointless consultation exercises which we all know are designed not to go anywhere. Take the 600 extra licences you were already planning to dish out for premium taxis and instead give 200 to each of the three leading ride-hailing companies.
Limit the validity period to no more than three years, so that we don’t inadvertently create another iron rice bowl franchise situation. Then just stand back and marvel at the result.
As has happened elsewhere, many taxi drivers will also register with the companies once the system is in operation. We will incidentally secure our premium service but, most importantly, the most common abuses will be squeezed out. We do not need complicated demerit schemes and half-hearted enforcement: market forces will fix it for us.
The taxi trade will no doubt threaten to block roads and adopt other tactics to obstruct implementation, at least at first. But we know how to deal with Occupy, don’t we?
Mike Rowse is the CEO of Treloar Enterprises. [email protected]