Uber not the only competition for Hong Kong taxi trade, as Didi and Amap also in market for passengers
Some Hong Kong taxi drivers have recently declared war on Uber through an “undercover operation” against its illegal ride-hailing service but the sector is also facing competition from fellow cabbies signed up to other online booking platforms.
Mainland Chinese ride-hailing giant Didi Chuxing also provides a service in Hong Kong, along with Uber. It offers two options, Didi Taxi, which charges a charter fare, and a regular metered one.
Didi was active in the Hong Kong market from 2015 when it operated under two brands, Kuaidi and Kuaidi ONE, offering cab and private car ride-hailing services.
Those services were merged into the single Didi app in 2018.
Didi also offers cross-border car services, allowing users to travel from Hong Kong to Shenzhen, Guangzhou, Dongguan, Huizhou and Zhuhai.
A ride from Causeway Bay to Hong Kong International Airport charged a charter fare of HK$324 (US$41.50) when the Post tried to book a cab from Didi’s app on Tuesday afternoon.
The charge was more competitive than Uber, which offered HK$365 on its lowest priced service and HK$366 on Uber Taxi. The price on navigation app Amap, which launched in March, was HK$333.
Amap is operated by Alibaba Group Holding, which owns the South China Morning Post.
Uber’s hailing service on metered taxis charged the cheapest, at HK$320. Taking a metered taxi on the street costs about HK$300 for such a trip.
Uber began operating locally in 2014, but the Transport Department then deemed it an illegal service as it needed a hire-car permit.
First violations incur a maximum penalty of a fine of HK$10,000 and six months in prison, while subsequent convictions can lead to one year in jail and a fine of HK$25,000.
Uber expanded its services in 2020 and recruited cabbies to its ranks with the introduction of Uber Taxi. It charges passengers as if they were using Uber rather than through metered taxi fares.
The city has 18,163 taxis with about 46,000 drivers, while a number of them have joined different cab-hailing platforms as a means to increase their income.
Ng Kwan-sing, the vice-chairman of the Hong Kong Taxi Council, said the income of cabbies who picked up orders from apps could be at least 30 per cent more than for those who relied on street hails.
“Although drivers joining apps need to pay 10 to 20 per cent charge to the platforms per ride, they are more likely to make more rides during their shift because of the matching basis,” Ng explained.
“The more the drivers respond, the more orders will be referred to them.”
He said cabbies who concentrated on street hails faced more difficulties as income would be more uncertain based on demand and the queuing time they spent at taxi ranks.
Lawmaker Ben Chan Han-pan, who chairs the Legislative Council’s transport panel, said taxis charging a charter fare remained legal because operators had a hire-car permit.
“It is illegal not to use the taximeter to calculate the fare. However, taxis themselves, possessing the hire-car permit, are allowed to accept online bookings. As long as both parties agree on the fare, it remains legal,” Chan said.
The Post has contacted Didi and Amap for comment.
The Transport Department said on Wednesday that the government welcomed the use of new technology, including online or mobile applications for hailing or booking of hire cars, but that they must be within the law.
A department spokesman added the Road Traffic Ordinance prohibited driving or using motor vehicles for carriage of passengers for hire or reward unless they complied with conditions, including a hire-car permit.
A Legislative Council document showed that cabs could pick up passengers directly on the streets or at taxi ranks or could be booked.
Cabs must also charge fares based on the taximeter or provide services in the form of “chartered taxis”.
The document said metered fares were regulated by the government. Charges for chartered services were agreed upon by the service provider and the passenger, which allowed flexibility to meet the needs of commuters.
Then transport chief Anthony Cheung Bing-leung in 2014 acknowledged that the use of mobile apps to hire taxis was no different from the use of traditional call methods and provided convenience to passengers.
He added that the use of taxi-hailing mobile apps solely for hiring cabs was not illegal in itself, but that it was an offence for anyone to to use such apps to solicit passengers with offers of fare discounts.
Other than the Uber Taxi arrangement, Uber services are illegal for drivers who do not obtain a hire-car permit.
Some cabbies have posed as passengers on Uber rides to catch and report illegal drivers in recent weeks, which led to a backlash from some Hongkongers.
Chief Executive John Lee Ka-chiu appealed to taxi drivers to leave enforcement of the law to police.
