Taxi operators have taken a route that may cost the industry dear in terms of public goodwill, after 1,000 drivers withdrew a threat to strike only after the government promised to crack down on illegal ride-hailing services. The last-ditch move to appease drivers on the eve of Wednesday’s threatened action may have defused the situation for now, but the authorities and cartel of taxi licence holders are still taking the city for a ride by not doing enough to keep up with new competition and evolving consumer needs.
Taxi operators have long been pushing the government to take harsher action against app-based services including Uber, which officially are illegal. Drivers previously went on strike over the issue in 2018, claiming the services harmed their business.
Cabbies also sought clarity on whether civil servants could use such services.
Uber has grown since it launched in the city in 2014. Two years ago, it bought the popular cab-hiring app HKTaxi and now offers Uber Taxi, allowing bookings of rides with a taxi-driver partner through its app.
Transport officials have now promised to consider tougher punishments, including jail terms, for such services. A bill is already being considered to double the fine for first-time offenders to HK$10,000 (US$1,282) and to suspend vehicle licences for six months.
Wong Yu-ting, chairman of the Hong Kong Tele-call Taxi Association, called the government move an “olive branch” that put the sector on course for a “return to normality”. Most customers, however, are not satisfied with the status quo.
Ride-hailing services have stayed in business despite the legal issues in part because of public frustration with the more than 18,000-strong taxi fleet, which is also under fire for failing to implement an e-payment system as an alternative to cash.
Far too many taxi drivers have been accused of overcharging, refusing hires and other misconduct, souring their reputation with locals as well as visitors. Enforcement of rules against such infractions has had little effect.
Wong admitted the strike threat was also related to driver anger about a proposed demerit system now before lawmakers that would lead to suspensions for serial offenders. The proposal would allow taxi owners to form fleets providing quality services, but cab groups previously dismissed the plans saying they would not help most drivers.
Efforts to improve the sector must pick up the pace. Both the authorities and taxi operators should address the underlying issues.
Until they do, frustrated customers can hardly be blamed for embracing alternative ways to get around.