Hong Kong taxi drivers should welcome a premium service that will meet consumer demand

Responses from the public and taxi trade to the Hong Kong government’s latest proposal on franchised taxis seem to be quite diverse. The public generally welcomes the new choice and calls for its early introduction, whereas some members of the taxi trade are worried about the impact of the new service on existing taxis.

The government has been listening to views in the community. We first mooted the idea of a premium taxi service in November 2015, to meet the community’s demand for personalised public transport services of higher quality. We have met members of the taxi trade, unions and other stakeholders through various channels, and we have been monitoring public opinion and media comments.

Hong Kong makes it easier to bid for premium cab franchise but taxi trade says plan not fixing industry’s problems

Adjustments were made to the preliminary proposals put forward last June, to address the concerns of the taxi trade on the one hand, and to better meet passengers’ demand for a more efficient and higher-quality “online car hailing” service on the other hand.

The 600 franchised taxis to be introduced represent only about 3 per cent of the 18,000-odd taxis in Hong Kong. Hence, they should not be seen as a threat to the survival of ordinary taxis.

Their role is to bridge the gap in the existing taxi market and respond to a very clear demand for new choice. With differentials in fare levels as well as operating and service features (at least half of the taxis in the new fleets are required to have wheelchair access), the move will help define two complementary taxi sectors. As an international city, Hong Kong can accommodate two types of taxis to meet diversified demand, just like, for example, Singapore and Tokyo.