Hong Kong gov’t to crack down on illegal ride-hailing following protests by taxi industry
Hong Kong Free Press
Hong Kong’s government has announced plans to crack down on unauthorised ride-hailing services, in a move welcomed by taxi industry representatives who threatened a strike last month.
Following a meeting with industry representatives on Wednesday, the Transport and Logistics Bureau said it would review legislation to regulate ride-hailing services – such as Uber – “so that only taxis and vehicles with hire car permits can provide services through the platform, with a view to combating illegal activities.”
The government will present its findings to the Legislative Council, the industry, and others concerned in mid-2024. It will also discuss policy and legal issues involved in regulating ride-hailing services, as well as considerations from overseas studies.
The bureau’s announcement came after 17 taxi groups called off a strike last month when the government agreed to crack down on illegal rides and an operator refused to lend out a car park for the protest.
The plan for the industrial action came after industry leaders said they were dissatisfied by a meeting with transport officials earlier that day.
“The Government welcomes the taxi trade’s views on the above issues, which will be taken into consideration when conducting the relevant review and study,” Wednesday’s statement said.
The bureau said police would step up enforcement against illegal ride-hailing, and urged the public and the industry to report cases.
Competition
Since Uber arrived in the city about a decade ago, ride-hailing services have become a strong competitor to traditional taxis. But they are illegal in Hong Kong unless a vehicle has a hire car permit. On first conviction, offenders are liable to a HK$5,000 fine and three months in prison, and in subsequent convictions, to a HK$10,000 fine and six months in prison.
Nevertheless, there have been no major crackdowns on Uber drivers or passengers amid growing dissatisfaction with licensed operators. Complaints against regular taxi services rose by more than 90 per cent in the past two years, with 2,397 cases reported last year, compared to 1,238 in 2020, the bureau said in April in response to a legislator’s questions.
Speaking to reporters after the Wednesday meeting, Wong Yu-ting, chairperson of Hong Kong Tele-call Taxi Association, said police could conduct sting operations and offer rewards to enforce the regulations.
Wong said the industry welcomed the bureau’s review, adding: “These ridiculous platforms should not exist in Hong Kong.” If the crackdown succeeds, many people would be incentivised to become taxi drivers, he said.
Driver offences, premium fleets
In an attempt to improve existing taxi services, the legislature last week passed the Taxi-Driver-Offence Points Bill, which penalises various taxi-related offences using a points system. The system will be set up next year to target drivers who overcharge or refuse to take passengers, among other offences.
The Legislative Council last week passed a separate bill to introduce premium taxi fleets, six-seater taxis, stricter penalties for taxi drivers who provided illegal ride-hailing services, and a two-tier penalty system for four taxi-related offences.
Authorities said in July when they first submitted the bill to LegCo that the premium taxi fleets would serve as platforms to regulate service quality. There are currently 18,163 taxi licences in Hong Kong, owned by nearly 9,000 licence holders.
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