Hong Kong will launch taxi fleets, a regulatory new regime designed to enhance taxi services, by the end of the year, the city’s transport chief has said.
Secretary for Transport and Logistics Lam Sai-hung told Commercial Radio on Sunday that the government had received 15 applications for five taxi fleet licences. Licences would be issued by the end of July, he added, with licenced fleets expected to begin providing services by the end of the year.
The government rolled out a series of steps to reform taxi services last July after the industry met with increasing criticism. New measures included encouraging taxi owners to form licenced taxi fleets, strengthening punishments for drivers, and relaxing passenger limits from five to six per vehicle.
According to authorities, a taxi fleet should include 300 to 1,000 urban taxis, or 100 to 350 taxis in the New Territories. Each taxi in a fleet must be less than three years old, and at least 10 per cent of the fleet must be barrier-free taxis accessible to people with disabilities. A taxi fleet should provide e-payment options for passengers and install surveillance cameras.
“We could see [from current applications] that there are many people in the taxi industry who hope to improve taxi services by setting up taxi fleets,” Lam said in Cantonese. “We are confident to bring a new outlook to Hong Kong’s taxi industry, to nurture a culture of good service.”
Currently, regulation of the taxi industry is loose. There are 18,163 licenced taxis in Hong Kong, owned by nearly 9,000 licence holders. Licences are issued without any conditions directly related to service quality.
In a departure for Hong Kong’s quintessential red-coloured urban taxis and green cabs for the New Territories, Lam added that licenced taxi fleets would be allowed to use their own design on the car body to help passengers identify them. Licenced taxi fleets will also be able to charge passengers point-to-point or metered fares, plus a booking fee.
The official said that authorities had not set a cap on the booking fees that fleets could charge, adding that he hoped the market mechanism would help regulate fees at a reasonable level.
Taxi fare increase
Separately, taxi fares rose on Sunday, with flagfall increasing by HK$2 to HK$29 for urban taxis, HK$25.5 for New Territories cabs, and HK$24 for Lantau taxis. Incremental charges have risen, as well.
To Sun Tong, vice director of the taxi branch of the Motor Transport Workers General Union, told HKFP on Monday that many taxi drivers were worried the fare increase will have a negative impact on business.
“According to taxi drivers, business on Sunday was down by around 25 per cent… that’s significant… Of course we will have to wait and see how things turn out in the next few months, ” To said in Cantonese. “But business has been slow over the past half year, especially from Friday to Sunday as many Hongkongers have headed north for fun,” he added, referring to trips made by the city’s residents to mainland China.
“We’re afraid that fare hikes will hardly increase our revenue because there will be fewer passengers,” To said.
Earlier in May, the government defended its decision to approve an increase to taxi fares against criticism from both passengers and drivers, saying it took the views of both sides into consideration.
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