Hong Kong’s taxi industry has recently applied to the government for a fare increase. Reports suggest that the government has reviewed the fare increase application and initially considers a fare increase of around 2 to 29 Hong Kong dollars (an increase of 7.4%) for red taxis to be more appropriate. Zhou Guoqiang, Chairman of the Taxi and Public Light Bus Association, stated in an interview with the newspapers that he is not concerned about taxis losing business to Uber after the fare increase, as there is still a price difference of over 10 dollars between the two. He boldly declared, “If adding 2 to 3 dollars affects your quality of life, I suggest you not take a taxi!”
Zhou Guoqiang pointed out that in recent years, operating expenses for taxis have been continuously rising, with significant increases in taxi insurance costs. Currently, the daily insurance cost for each taxi is between 130 to 150 Hong Kong dollars, and maintenance costs have also been increasing. If drivers’ income remains stagnant while the public criticizes the industry’s service quality, it is unfair to taxi drivers.
He further mentioned that this fare increase for taxis is only the third in a decade. When the government approved a fare increase two years ago, fees were already lagging behind by 20%. If the government ultimately decides to raise fares by only 2 to 3 dollars, but enhance the crackdown on illegal taxis, he will accept it. He also reiterated that he is not worried about taxis losing business to Uber after the fare increase, as there is still a price difference of over 10 dollars between the two.
Moreover, Zhou Guoqiang emphasized the need for the government to clearly define the position of taxis, whether they are meant to be a public transport option or personalized service. He reiterated, “If adding 2 to 3 dollars affects your quality of life, I suggest you not take a taxi!” He also pointed out that the public generally perceives Uber to provide better service, likening it to visiting unlicensed eateries where the service attitude is more courteous. He believes that by intensifying efforts to combat illegal taxis, more than 10% of business may “return” to the taxi industry, which could then lead to an overall improvement in service quality.
The last fare increase for taxis was in July 2022, where all taxis had a uniform fare increase of 3 Hong Kong dollars when the flag falls. Red, green, and Lantau Island taxis started at 27, 23.5, and 22 Hong Kong dollars, respectively. This time, the industry not only requested an increase in flag fall price but also proposed raising flag fall fares for urban taxis by 5 Hong Kong dollars to 32 dollars, New Territories taxis by 4.5 dollars to 28 dollars, and Lantau Island taxis by 6 dollars to 28 dollars. They also applied for an increase in metered fares, with red and green taxis increasing by 0.2 dollars, while blue taxis would increase by 0.1 dollars for the 2nd to 20th kilometer and 0.2 dollars thereafter. Red taxis also asked for a reduction in waiting time for metered fares, from the current 60 seconds to 45 seconds.
During the industry’s previous request for a fare increase, it was claimed that increasing drivers’ income could attract new recruits and encourage the industry to improve services and invest in more new equipment. However, there has been little improvement in taxi services over the past two years, with issues such as illegal taxis and refusal to serve passengers still prevalent.