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Hong Kong transport
Opinion
SCMP Editorial

EditorialDigital revolution can revive Hong Kong taxi industry’s image

Embracing e-payments will shed the industry’s technophobia and improve services, raising its standing with the public

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A taxi interior is plastered with advertising for various electronic payment systems for settling fares, on March 10. Taxis are required to offer at least two e-payment options – one QR code-based and one non-QR code method – from April 1. Photo: Jelly Tse
A quiet revolution is sweeping the Hong Kong taxi industry. It will become official on April 1, when the replacement of cash-only settlement of fares with electronic payment options will be mandatory. The leap into the 21st century is overdue. The industry has shot itself in the foot with resistance to technology that has been bad for business, when it is already battling a perception of poor service.

That said, the change is a landmark of its kind when it comes to overcoming technophobia. About two-thirds of Hong Kong’s 46,000 active taxi drivers are aged 60 or above and not easily weaned off cash transactions in which they often benefit from tipping – or being urged to keep the change. Now, well before the deadline, it emerges that the industry is well placed to meet the requirement to install at least two e-payment options, with about 90 per cent of the city’s taxi drivers already registered with e-payment platforms.

Hong Kong Taxi Council chairman Ryan Wong Cheuk-pong says drivers stand to benefit from e-payments through fewer fare disputes and not having to worry about a lack of change. “Many residents and visitors are now used to not carrying cash, so the lack of [electronic] options has stifled the industry’s development,” he said. “When residents do not carry cash … [it] dampens willingness to take taxis.”

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Chau Kwok-keung, chairman of the Hong Kong Taxi and Public Light Bus Association, said the transition meant cabbies would inevitably lose small “tips” earned by rounding up fares. “Those minor amounts are significant for some drivers where every dollar counts. But we have no choice but to keep pace with the times.”

As part of the effort to raise the taxi industry’s quality and image, the new law stipulates that taxi drivers must provide at least one QR code-based option – such as AlipayHK, WeChat Pay HK or BoC Pay – alongside a non-scanning alternative, including Octopus, credit cards or the Faster Payment System.

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An aged workforce has kept the city’s taxi industry going. At the same time, it needs to attract younger drivers to enhance safety and its image. The number of taxi-driving licence holders under 40 rose by 50 per cent to more than 18,000 between 2019 and last year. Hopefully, digitalisation will add momentum to that trend.

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