Passengers get into taxis in Causeway Bay on May 7. Both the taxi industry and ride-hailing services such as Uber ought to be better regulated. Photo: Sam Tsang
Opinion
Alice Wu
Alice Wu
Hong Kong taxis and Uber need not have a fight to the finish
The public and Hong Kong’s taxi drivers have long had a strained relationship, something that won’t be helped by an impending fare increase
Instead of dragging its feet, the government should clear up any legal grey areas over Uber and better regulate taxis
Hong Kong cab drivers have evidently taken matters into their own hands, performing sting operations by posing as passengers hailing Uber rides and then calling the police on the Uber drivers. These undercover operations have led to some police investigations of Uber drivers but no arrests so far.
Uber has operated in Hong Kong for a decade, much of that time in a legal grey area. Legally, all vehicles carrying passengers for payment need to have a hire car permit. Since the city’s taxi drivers consider ride-hailing services to be direct competition, they have waged war against Uber pretty much since it arrived in Hong Kong.
It is unclear whether the sting operations were a reaction to perceived government inaction or had anything to do with the government’s approval of a mere HK$2 (26 US cents) increase in flag-fall rates that comes into effect in July. That rise was far below the 17 per cent rise in fares taxi operators had requested.
Chief Executive John Lee Ka-chiu was quick to discourage people from taking the law into their own hands without proper training and legal knowledge. Lee rose through the ranks in law enforcement, and his call should be heeded. Civilians won’t be able to call for backup if unexpected circumstances arise; besides, legal procedures must be strictly followed.
As it is, even the taxi fare rise has been controversial. The industry’s initial request led to an outcry from the public and lawmakers. The government curbed that request, but we are still talking about an average fare increase of 9 per cent per ride, far above the rate of inflation.
00:59
Hong Kong taxi drivers continue to report Uber drivers despite online backlash
Hong Kong taxi drivers continue to report Uber drivers despite online backlash
None of this will fix the strained relationship Hong Kong commuters have with the city’s cab drivers. While taxis can be a convenient way to travel, bad behaviour and driving have long put potential passengers off. Common complaints include drivers refusing customers, ripping off tourists or taking longer routes, dangerous driving, smelly or dirty cab interiors, and drivers complaining about a passenger’s chosen route being too short, too far or too inconvenient.
Only after Uber entered the market did passengers have the choice not to deal with these issues. Hong Kong’s taxi drivers have had it too good for too long and are now counting down the days before they must shape up or get shipped out. “Especially when the taxi industry’s image is so negative, if it can’t fix its quality problems, people will just opt for alternatives,” said Scott Leung Man-kwong, a lawmaker and member of the Legislative Council’s transport panel.
The taxi industry has taken baby steps to catch up with the times. It took too long for cashless payment to be offered, and these options are still not available in all taxis. Vehicles that are in poor condition are still in service. Taxi drivers should be required to maintain acceptable service standards.
03:47
Elderly taxi driver keeps his foot on the pedal as public debates over ageing drivers
Elderly taxi driver keeps his foot on the pedal as public debates over ageing drivers
Taxi drivers have pointed the finger at competitors, insisting that ride-hailing services have hurt the industry and complaining that the government has failed to apply the law to Uber. However, it looks unlikely that the government is going to crack down on a service Hongkongers and tourists increasingly prefer to taxis.
The Transport Advisory Committee’s complaints unit received 11,096 complaints and suggestions related to taxi services last year – a 52.8 per cent increase from 2022. At this point, one must ask whether the industry can regulate itself. Looking at the numbers, the answer is clearly no.
The government has dragged its feet on clearing up the legal issues that surround the operation of car-hailing services, and ought not to continue sweeping the matter under the carpet. Many have argued there are enough passengers to go around. Lawmaker Johnny Ng Kit-Chong said taxis and Uber did not have a “life or death” relationship, but could coexist.
Again, it is the government that needs to step in, address the grey area and ultimately ensure that passengers are protected. It has vowed to release the results of its study on the legal issues surrounding ride-sharing services to lawmakers in July. It also said in December that it would regulate ride-sharing services.
The chief executive has indicated that public opinion will be weighed as the government decides on its next step. After a decade, it is clear what the public thinks: not only do we need ride-sharing services to be regulated, traditional taxis also need better regulation.
Alice Wu is a political consultant and a former associate director of the Asia Pacific Media Network at UCLA
