An impending ride-hailing crackdown and regulation are scaring drivers in Hong Kong. According to a recent report on Hong Kong’s number one newspaper, South China Morning Post, brand-new regulations will govern and oversee the biggest ridesharing operators in the East Asian city, including Uber, Tada, Amap, and DiDi Chuxing.
That means stricter rules, and more challenges in operations. For one, authorities in Hong Kong is issuing around 21,000 licenses in the initial stage of regulating these ridesharing apps.
While the crackdown upon unscrupulous apps and drivers, and regulations are not yet in their full scale, those who fail to comply with the rules are already facing heavy penalties.
So, to pacify the raging waters, and to tame the wild current, Uber has announced the acquisition of Hong Kong-based Internet cab-hailing app, FlyTaxi. This expands its taxi services, ahead of the soon-to-be-implemented regulatory regime for ridesharing services later this year.
FlyTaxi is a prominent Hong Kong-based taxi eHailing app, founded in 2013, designed for booking red, green, or blue taxis around the Chinese city. It is one of the first ride-hailing platforms launched in Hong Kong.
In a statement days ago, Uber stated this acquisition of FlyTaxi is part of its commitment to help grow the taxi industry, and provide “great economic opportunities” for drivers. When their operations are in motion, this shall lessen the chances of these drivers failing to comply with the laws.
Uber added and clarified that FlyTaxi would continue to operate as normal, and that nothing would change for drivers and riders using either the app for the Uber app, or the home-grown taxi-hailing system.
Estyn Cung, the general manager of Uber Hong Kong, chatted with Ridesharing Forum, “Uber has been investing in Hong Kong’s taxi industry for well over a decade, and this acquisition partnership reinforces our deep commitment to the city. By combining FlyTaxi’s local expertise with Uber’s technology, we are empowering drivers to grow their businesses and continuing to give riders the exceptional experience they expect.”
Stakeholders are also saying that this team-up with Uber “is a proud milestone for FlyTaxi, allowing the company to leverage global technology to ensure the local taxi industry continues to innovate and thrive.”
It could be recalled that Uber previously purchased another famous cab-hailing app in Hong Kong, HKTaxi. If you’re thinking that this is conflicted interest, the service actually closed down, and completely migrated to the Uber app. You can book HKTaxi rides via the official Uber application.
Francis Fong Po-kiu, the honorary president of the Hong Kong Information Technology Federation, saw Uber’s acquisition of FlyTaxi as an avenue, not of the stars, but for the ride-hailing giant to “reduce competition and further solidify its taxi booking service in Hong Kong”.
“This acquisition also aims to mitigate the impact of uncertainty surrounding the launch of its ride-hailing service in Hong Kong in the fourth quarter,” he told Ridesharing Forum. Take your ridesharing experience to a whole new level by signing up for your account here on the Ridesharing Forum website, and sharing your thoughts!