Source:
https://scmp.com/news/hong-kong/transport/article/3005549/new-uber-flash-service-hong-kong-racks-180000-rides-first Transport
New Uber Flash service in Hong Kong racks up 180,000 requests in first month despite taxi partner pulling out over threats to family
- Ride-hailing app’s business ‘growing nicely’ says regional head, but industry still opposed to company’s existence
- Number of journeys less than 1 per cent of almost 27 million taxi rides taken in city every month
Uber's office in Causeway Bay. Photo: Winson Wong
A new partnership between Uber and Hong Kong’s taxi companies got off to a steady start taking more than 180,000 orders over its first month in operation, the firm said.
The new service, Uber Flash, which matches the ride-hailing app with taxis, went ahead despite the last-minute withdrawal of one partner, prompted by threats from within an industry afraid of giving the company a foot in the door.
Uber drivers already operate in Hong Kong, but as it is illegal to carry paying passengers without a hire car licence the company does not disclose figures for rides taken. It also declined to say how many taxi firms it was working with for the new service.
According to government statistics, Hongkongers took an average of 897,000 taxi journeys a day in 2017, which equates to almost 27 million journeys over the course of a month. Uber’s opening month is less than 1 per cent of that figure.
Emilie Potvin, Uber’s head of public policy for North Asia, told the Post that Uber Flash had fared well in the first month of operation.
“The business is growing very nicely,” she said. “We’ve launched it only a month ago, [but] what it tells us is that people in Hong Kong really want to be able to have access to all kinds of travel options. And Uber Flash is a new option for them.”
The partnership went ahead despite the owner of Tin Shing Motors, a small firm with a fleet of 28 taxis, backing out of an agreement to work with the ride-hailing company.
Edward Lau had been called a “traitor to the taxi industry”, and his family had reportedly been threatened for getting involved with the new scheme. He was also told he would have trouble getting insurance if he worked with Uber, a source close to him claimed.
“As you know, change can be difficult,” Potvin said. “Change can be scary sometimes. We were grateful for Tin Shing Motors for the conversation that we had with them. They taught us a lot about the taxi industry, and some of the challenges that they are facing.”
While Uber’s numbers are minuscule compared to the industry overall a survey it commissioned, which was conducted by researchers at the University of Hong Kong, found 74 per cent of respondents believed the company should be able to operate legally in the city.
The poll asked 515 respondents their views on ride-hailing in the city, and 61 per cent said taxi services in Hong Kong had remained stagnant in the past year, with only 11 per cent feeling services had improved.
Overall, taxi usage is down 16 per cent from 1.07 million daily trips in 2008 to less than 900,000 in 2017, with drivers claiming that Uber is stealing their business.
Emilie Potvin said it was time to listen to Uber’s demands to be allowed to operate legally in the city. Photo: Winson Wong
The company has long sought to get a break in Hong Kong, where a population of more than 7 million is served by 18,163 licensed taxis, and about 40,000 active drivers. The government has stood firm in cracking down on the company, with proposed increases in penalties for drivers caught providing illegal rides.
An overwhelming 82 per cent believed promoting innovative technology could raise Hong Kong’s competitive standing as a smart city, while 60 per cent said the government should take steps to encourage ride-sharing developments in its smart city blueprint.
Potvin called for the government to amend the outdated transport laws to allow her firm to operate legally in the city.
“What we believe is that this should set the stage for the government to set up a dialogue with all the companies in the transportation ecosystem, to really talk about how should we regulate ride-sharing,” she said.
“Despite encountering multiple setbacks, Uber has been persistently knocking on doors of various industry sectors and government departments in Hong Kong.
“We’ve requested to be heard … but have been met with silence so far.”
Chan Man-keung, chairman of the Association of Taxi Industry Development, said he believed the taxi business only accounted for a small percentage of Uber Flash.
“Even so, the figures also show how much business Uber has eaten into the taxi industry,” he said.
Despite demanding Uber abide by the law, he was against the government changing the law.
“If the government amends the law just for the sake of facilitating Uber, I believe the whole taxi industry will jump up opposing the government,” he said.