Hong Kong’s leader has rejected a proposal from the taxi industry for the government to repurchase licences that have depreciated in recent years due to competition from online ride-hailing services, claiming that the licences had always given cabbies exclusive rights.
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Chief Executive John Lee Ka-chiu on Tuesday also said online ride-hailing was an “irreversible trend”, as he pledged to provide a regulatory framework for such platforms as soon as possible while urging taxi drivers to improve their services amid public criticism.
Some leaders within the taxi trade had recently called on the government to repurchase licences for HK$5 million (US$637,100) each. They contended that its value had consistently depreciated with the rise of online ride-hailing platforms like Uber.
The value of a licence has plummeted from a historic high of HK$7 million to below HK$3 million in recent months, resulting in significant financial losses for owners.
“We must be very cautious when it comes to using public funds,” Lee said when asked if he would consider the suggestion.
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Lee argued that the licenses had given the sector an “exclusive privilege” to operate the vehicles, such as using the taxi ranks, picking up passengers in designated restricted areas and getting customers from the street.
“These usages of the taxis, which are granted for a long time under the exclusive privileges of the license, have led to a direct profit on these licenses. It has also allowed taxis to gain profits under this form of operation for a long time,” he said.