Uber calls out simpler, flexible licensing mechanism as daily demand in HK hits 1.2m

In light of the government's plan to finalize a legal framework for ride-hailing services within the year, a study has revealed that the daily demand for point-to-point transportation in Hong Kong has surpassed 1.2 million trips.

Following the study conducted by a consulting firm commissioned by Uber and surveyed over 1,000 people, it is stated that around 19 percent of potential demand for point-to-point transportation remains unfulfilled due to prolonged waiting times.

Moreover, the study noted that the demand for personalized point-to-point transport services is anticipated to exceed 1.4 million by 2034. 

Should online ride-hailing services be regulated with greater clarity and improved standards, it is suggested that around four percent of private car owners and one percent of public transport users would consider transitioning to point-to-point transportation services. 

Uber Hong Kong general manager Estyn Chung Chi-ting hoped that the government would establish a balanced and sustainable regulatory framework that facilitates the natural development of point-to-point transportation services. 

Chung also suggested that ride-hailing platform regulations avoid complex licensing mechanisms and allow drivers the freedom to determine their working hours and methods, adding that stringent regulations could undermine service reliability, restrict passenger options, and negatively impact driver income.

He further noted that over 60 percent of Uber drivers work fewer than 20 hours per week, which is significantly less than the typical hours worked by taxi drivers, which implies that the relationship between Uber and taxi drivers should be perceived as complementary rather than competitive.

Due to the flexible nature of Uber drivers' work arrangements, Chung emphasized the challenges associated with determining the precise number of ride-hailing licenses necessary, asserting that the primary focus should be ensuring a sufficient driver pool to meet user demand. 

In addition, he affirmed the necessity of conducting background checks on registered drivers, as well as implementing regular inspections for vehicles. 

Regarding the practice in Australia of adding an additional AU$1 (approximately HK$5) to each Uber journey in order to support taxi services, Chung acknowledged that this could be a viable option for the government to consider.