“The government will also explore the regulation of online hire car-hailing platforms, so that only taxis and vehicles with hire car permits can provide services through the platform, with a view to combating illegal activities,” a bureau spokesman said.
He added authorities planned to communicate with lawmakers, the trade and others involved in mid-2024 to discuss policy and legal perspectives raised by the regulations, as well as the key considerations derived from study on overseas experiences.
The meeting was arranged a month after a threatened 1,000-driver strike by the taxi trade, but it was called off after the government promised a tougher stance on illegal ride-hailing services and increased jail terms for offenders.
“I hope the message is loud and clear to the public and to those operating with illegal vehicles that there is no future for this industry,” said Dr Ryan Wong Cheuk-pong, chairman of the Hong Kong Taxi Council.
Ride-hailing services, similar to those offered by Uber, are illegal in Hong Kong without a hire car permit.
The services have posed keen competition to traditional taxi drivers in the nine years since they first arrived in the city.
“The authorities promised that they will amend legislation so that all vehicles operating in Hong Kong are legal,” Hong Kong Tele-call Taxi Association chairman Wong Yu-ting said.
“Police will also work with those in the taxi trade to combat illegal car hire services with immediate effect.”
Hong Kong taxi drivers call off planned strike after ride-hailing ‘olive branch’
Hong Kong taxi drivers call off planned strike after ride-hailing ‘olive branch’
Wong added that possible ways that police could signal a tougher stance on illegal services included the use of undercover operations.
“The online ride-hailing services run on a much lower cost than taxis,” Chow Kwok-keung, the chairman of the Hong Kong Taxi and Public Light Bus Association, said.
“Their insurance costs several thousand dollars, ours cost tens of thousands,” he added. “Our vehicles could be in the region of three hundred thousand, whereas a private vehicle could cost as low as several tens of thousands.”
Complaints about quality of service have plagued taxi drivers and drove some passengers to ride-hailing services.
Chow added that the trade could use GPS navigation to reduce disputes about drivers taking a longer route or use sound recording devices to monitor them for rudeness or refusing to take passengers.
The taxi trade has often voiced its frustration about what it said was government inaction over a crackdown on ride-hailing platforms. Drivers have said the app-based services have had a significant impact on their business.
The Transport and Logistics Bureau told the Post earlier this week that it would review the legislation to find out how to better tackle illegal taxis or vehicles carrying passengers for hire and look at ways to regulate online taxi platforms, with a view to restrictions on the provision of services.
Hong Kong cabbies rally in latest drive against illegal ride-hailing services
Hong Kong cabbies rally in latest drive against illegal ride-hailing services
Officials added they would talk to lawmakers, the trade and others about the policy and legal matters related to regulation, as well as discuss key considerations gleaned from examination of experiences overseas.
They said detailed proposals will be drawn up, subject to the progress of a judicial review involving a driver of an online vehicle platform and its possible impact on the regulatory system, as well as the views of stakeholders.
Legislation was passed earlier this month that introduced stiffer penalties for drivers who provided illegal rides, including Uber drivers.
It was proposed to double the maximum fine for first-time offenders to HK$10,000 (US$1,281) with a HK$25,000 penalty for subsequent convictions.
“We believe that Uber and taxis are better together,” a spokesman for Uber said. “We know from many other markets around the world that taxis and Uber can coexist and grow together.
“We look forward to working with relevant industry stakeholders and the government to find a mutually beneficial pathway forward.”
Those convicted of offences will also have their vehicle licences suspended for six months for a first conviction and 12 months for subsequent ones.
The Road Traffic Ordinance rules that “no person shall drive or use a private car; or suffer or permit a private car to be driven or used for the carriage of passengers for hire or reward unless a hire car permit is in force in respect of the vehicle”.