The Street Taxi Struggle in Hong Kong: Should the Government Buy Back Licenses?
Hong Kong's leader declines taxi license purchase-back initiative, acknowledging the "unstoppable" trend towards ride-hailing services.
In the bustling streets of Hong Kong, the age-old taxi industry is facing a significant challenge: ride-hailing services like Uber. Some industry heavyweights have suggested an unconventional solution - buying back the licenses for HK$5 million each. But would that help revive the sector?
The value of a taxi license and vehicle, once worth a whopping HK$7.66 million in 2009, has plummeted to below HK$3 million in recent times. This steep depreciation has left many owners grappling with potential financial losses.
John Lee Ka-chiu, a notable figure in the industry, has stayed silent on the matter— so far. When asked about the buyback proposal, he advised caution with public funds.
Lee argues that the licenses served as an "exclusive privilege," offering rights such as access to taxi ranks, designated restricted areas, and even street pick-ups.
With the government digging into possibilities of regulating online ride-hailing platforms for passenger safety and a fair playing field, the future of Hong Kong's traditional taxi services remains uncertain. Nonetheless, Lee emphasized the importance of recognizing and boosting the transportation service's social value by encouraging innovation, improved management, and enhanced services.
Whether the buyback proposal will see the light of day, or if it's a short-lived suggestion to appease the beaten-down taxi industry, is still a mystery. One thing's for sure: the evolving landscape of transportation in Hong Kong isn't losing steam anytime soon.
The steep depreciation in the value of a taxi license and vehicle has left many owners in the automotive industry grappling with potential financial losses, as the uncertainty surrounding the future of Hong Kong's traditional taxi services continues to escalate. John Lee Ka-chiu, a prominent figure in the finance and transportation sectors, has advised caution with public funds and emphasized the importance of innovation, improved management, and enhanced services to boost the social value of the taxis, amidst the rise of the finance-backed ride-hailing services in the industry.
