Passengers must not be left behind in ride-hailing debate

Hong Kong’s journey towards regulation of ride-hailing services has been slow and long, with plenty of jams along the way. It is 12 years since Uber started operating in the city. But the destination is now in sight. More details were provided last week and the first licences for platforms are due to be issued this year. Ride-hailing companies offer a valuable, convenient service for residents and visitors, especially amid concerns about the quality of service offered by the city’s traditional taxis. The government estimates 190,000 people use the platforms every day, more than 20 per cent of all passengers, and there are about 114,000 trips. But they remain unregulated, operating in a legal grey area. This is unsatisfactory. The time to put them on a clear, lawful footing, providing operators and their drivers with clarity, is long overdue. Now, the focus is on precisely what form that regulation will take. Licences and permits must be applied for and various conditions met. The biggest question concerns the level at which a cap on the number of licences to be issued will be set. There is a danger the object of the exercise, said by the government to be primarily the travel needs and experience of the public, will be defeated if the number of permitted ride-hailing vehicles is too low. The limit, if there must be one, should be set at a level that ensures there are sufficient drivers available to meet the city’s needs, so passengers can make bookings and not have to wait too long. The taxi industry has long complained about and resisted competition from Uber and other ride hailing firms, which now include Tada, Amap and Dudu Chuxing. Amap is operated by Alibaba Group Holding, which owns the South China Morning Post. It is no surprise cabbies want the number of such vehicles to be tightly restricted. Some taxi operator associations are even pushing for just 2,000 licences to be granted, an absurdly low level. Uber argues that even limiting the number to 15,000 would have a drastic impact on the industry, with passengers ultimately paying the price. The US-based company says fares would rise 70 per cent and only four in every ten peak time bookings would be successful. It also warns that half of its 30,000 drivers would face the loss of their ride-hailing livelihoods and cites a 2025 survey showing such work to be the primary source of income for almost a third of them. The government, in a paper submitted to the Legislative Council, recognised that a few thousand permits for vehicles will not be sufficient to meet the current level of ride-hailing services or satisfy public demand. But the Transport and Logistics Bureau set out arguments on both sides. Those pushing for a higher number of ride-hailing vehicles pointed out that demand for such services is likely to rise with economic development and the growth in the number of tourists. Some submitted there should be more ride-hailing vehicles than the city’s 18,000 taxis, as in other parts of the world. There are more than twice as many as taxis in Shanghai, almost six times the number in Shenzhen, more than five times as many in Singapore and more than 12 times in Canberra. Those opposed pointed to Hong Kong’s “unique situation” and argued a prudent approach should be adopted as this is a new policy. A potential surge in the number of vehicles clogging Hong Kong’s roads is another concern raised. The government should ultimately let the market determine the level of ride-hailing vehicles needed. Whatever cap it imposes should be carefully assessed and quickly amended if required. There is a need for flexibility. Details of the planned regulatory regime will, apart from any cap, impose strict new rules on all involved in providing such services. Only vehicles that are less than 12 years old qualify for use. Drivers must pass a test and obtain a permit. A significant requirement is that only the registered owner of the vehicle can use it to provide ride-hailing services. The government says this is to prevent the development of a rental market for the licences. One of Hong Kong’s “unique features” is the political influence traditionally enjoyed by the taxi industry. It has, over the years, fiercely resisted attempts to improve standards, adopt new technology and face up to competition. It is not driving into the 21st century – it is being towed. But the unwillingness of cabbies to move out of their comfort zone has been accompanied by complacency. There have been persistent complaints about rude taxi drivers, overcharging, outdated vehicles and other abuses. There have also been too many traffic accidents. These shortcomings have sometimes created a poor impression of Hong Kong at a time when the city is keen to attract visitors who will return. But change is finally on the way. A stricter disciplinary system has been put in place. New fleets of “premium taxis” aiming to offer a superior experience have been launched. Restrictions were introduced in January on the number of digital devices drivers can have on their dashboard or windscreen. This is intended to curb the practice of installing a wall of phones, distracting them from the road. Then, in April, a revolutionary step was taken. Taxi drivers were required to provide two alternative forms of digital payment. It is astonishing it has taken this long to get cabbies to adopt modern payment methods. But for some, cash remains king, as it does not leave a trail and allows the unscrupulous to avoid tax or improperly maintain their eligibility for public housing. It also makes tips more likely. While the overwhelming majority of taxi drivers have complied, there have been complaints that some are still demanding cash, claiming their digital payment equipment was not working or that the battery had run out. This typifies a determination to maintain the status quo. Further measures are on the way. The government is planning a much-needed stepping-up of medical checks for commercial drivers, including cabbies, with a proposal to require them to submit to health examinations every year from the age of 65. This follows a spate of accidents involving elderly taxi drivers. Last week a 70-year-old was arrested after veering onto a pedestrian walkway, killing one woman and seriously injuring another. Taxis and ride-hailing firms will need to both compete and complement each other under the new rules. The demand for such services in Hong Kong, where only a small proportion of residents drive, is high. The priority must be to ensure passengers enjoy a good service. Ride-hailing companies have waited a long time to be given the green light. Now, the new regulations must work in a way that ensures the road ahead is clear.

Passengers must not be left behind in ride-hailing debate

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}There is high demand for the platforms in Hong Kong. The priority must be to ensure that the service is good

There is high demand for the platforms in Hong Kong. The priority must be to ensure that the service is good