Hong Kong’s taxi industry has proposed increasing the flagfall for urban taxis from HK$27 to HK$32 – more than 18 per cent – citing rising costs and competition from illegal ride-hailing services.
Flagfall for New Territories taxis should increase to HK$28, a HK$4.50 jump, and incremental charges should rise by 20 cents for both types of taxi, the chairman of the Hong Kong Taxi and Public Light Bus Association Chau Kwok-keung told local media on Wednesday.
The minimum fare for Lantau taxis, meanwhile, should rise from HK$22 to HK$28, representing an increase of 27.3 per cent, said Ng Kam-yiu, chairman of the Lantau Blue Taxi Society. Incremental charges should be increased by 10 per cent.
Chau said the flagfall had only increased by HK$5 over the past nine years and the proposed rise was needed to combat inflation and rising insurance costs.
Taxi fares were last increased in July 2022, from a minimum HK$24 to HK$27 for urban taxis, from HK$20.5 to HK$23.5 for New Territories taxis, and from HK$19 to HK$22 for Lantau taxis.
Chau said the fare hike would improve the livelihoods of vehicle owners and drivers and attract newcomers to the industry.
Uber
Chau added that illegal ride-hailing platforms such as Uber had created an “unfair” business environment, blaming them for the decline in taxi drivers’ service quality. He said drivers’ pay should improve so they could meet public expectations.
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.
The Transport Department told local media that the industry had reached a consensus on the fare hike last March.
It said it was examining the fare increase application, taking into account operating costs, the disparity between fares for taxis and other public transport, overall supply and demand, service quality and public opinion.
After completing its evaluation, the department will submit its recommendations to the Executive Council and the Legislative Council.
Service quality
Centrist party Third Side said taxi services had got worse in recent years. Refusing some passengers and overcharging had seriously damaged the image of Hong Kong’s tourism industry.
Third Side said in a statement that the industry had for years proposed fare increases under a non-competitive business environment, but these would only intensify the public’s aversion towards commuting by taxi.
The party called on the government to keep up with global trends and authorise ride-hailing services to “benefit all citizens of Hong Kong.”
Authorities have announced plans to crack down on unauthorised ride-hailing services.
However, 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 recent years, with 2,397 cases reported in 2022 compared to 1,238 in 2020.
