How does an 83 percent fare increase not for ordinary taxis, but for Uber in Hong Kong sound like? Definitely unpleasant, right?
Well, that is about to happen, as Uber believes, now that the Hong Kong government is proposing measures to limit the permits it grants!
Permits are a controversial tackling point in the ridesharing industry with the point of authorities being that permit caps are implemented to ensure the roads won’t be congested with rideshare cars. Point taken. But, Uber is urging the Hong Kong government to check the surroundings, and re-visit its permit cap.
There is a planned 10,000-permit cap for ridesharing services, and not only is Uber doubtful about it, but 89 percent of the drivers, too, who say this regulation is wrong.
Uber has over 30,000 local drivers currently active on its platform. Meaning to say, this proposed cap would reduce this number by two-thirds.
Uber Hong Kong is saying that the East Asian city’s government should re-check its decisions.
“We have also observed deep concerns over driver-purchase commercial insurance as 70 percent say the proposed insurance costs would push them off ride-hailing,” Nicole Lee, head of Public Policy and Government Affairs of Uber Hong Kong. “We encourage the Government to adopt more balanced quota arrangements, codify an effective data-based review mechanism on a quarterly basis, and prioritize active drivers with strong records – building a framework grounded and reflecting the standards of a world-class city.”
Then, there’s the repercussions on the economy, using economics facts. With lesser drivers on the road, it would be hard to book rides during peak periods and rainy season, so higher demand with lower supply means higher fares. The anticipated higher fares are at 83 percent, while the anticipated waiting times are at 80 percent.
On the part of the passengers, they also want the Hong Kong government to check around, and re-visit their policies. There is a 93 percent supporting the review, and 90 percent saying the review must be clear and transparent.
In addition, there is a 74 percent “extremely concerned” about the proposed quota, with around 20 percent saying they are very, very concerned.
You can see that both drivers and passengers are opposing this government undertaking. Some respondents who are drivers say it would be difficult for them to obtain permits, affecting their livelihood, if this is the case.
Should the Hong Kong government continue with the 10,000-permit cap along the line, or should they postpone this until all parties are resolved? Share your thoughts by creating that account, and joining the talks. You may also share this story around online with your family and friends. Thank you for browsing RSF!