Uber backs away from Hong Kong offer, decides to keep its Asia-Pacific headquarters in Singapore
- In May, the ride-hailing firm said it was ready to move its office to Hong Kong if it was allowed to operate in the city legally
- But on Thursday it said it had not received the required level of certainty from the Hong Kong government
In a statement issued on Thursday, Uber said that in May it was ready to move its Asia-Pacific headquarters to Hong Kong if it saw progress on ride-sharing regulations.
“Since then, we have seen strong public support for reforms, but not the level of certainty from the government that we need. As we continue those efforts, we have decided to keep Singapore as a regional hub for the medium term,” it said.
Uber offers to move Asia-Pacific headquarters to Hong Kong if city legalises service
By no means are we quitting the Hong Kong market. We still need the government to have an open dialogue with us
Uber has been calling for a partnership with the Hong Kong government to address the city’s mobility future. However, the government has so far stood firm in cracking down on the service, with proposed increases in penalties for drivers caught providing illegal rides.
In a written reply to the Legislative Council earlier this month, Secretary for Transport and Housing Frank Chan Fan said the government was undertaking the relevant legislative amendment work on penalties, and would introduce a bill to Legco as soon as possible.
He pledged to crack down on illegal ride-sharing services, saying police would step up efforts to combat the offences of those using vehicles for illegal rides.
Hong Kong makes it ‘impossible’ for Uber drivers to operate legally, says lawyer
A source in Uber said its earlier offer to set up its regional hub, as well as an innovation and engineering hub in the city was now put under review.
“Our leadership is considering other options for our regional headquarters. The reason is simple: there has been a lack of engagement between us and the [Hong Kong] government,” the source said.
“Over the past six years, the government, including policy secretaries, have not met us even a single time for discussions about our proposals.”
He said the government’s inaction over the past few years had brought “very serious negative consequences” to Hong Kong, especially amid a worsening unemployment scenario in an economy ravaged by the pandemic.
Hong Kong has about 14,000 active Uber drivers and the source said many of them had turned to the ride-hailing platform to make a living after losing their jobs.
However, the source said the Hong Kong office would continue to fight for favourable conditions for making it possible to move the firm’s regional headquarters to the city in future.
“By no means are we quitting the Hong Kong market. We still need the government to have an open dialogue with us,” the source said.
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An industry source said Uber was very disappointed that the government had spurned its goodwill offer.
“Over the past six years, and especially in the past two months, the government has given the cold shoulder to the firm. The government’s response has dampened the enthusiasm of Uber for Hong Kong,” the source said.
A spokeswoman of the Transport and Housing Bureau said that “while the government welcomes companies from outside Hong Kong to explore business opportunities” in the city, “the law and prevailing policies must be observed by all investors”.
