Next stop: HK

Staff reporter

Singapore-based online ride-hailing platform TADA has thrown its hat into the ring for a share of Hong Kong's ride-hailing business, vowing to service locals by November despite uncertain government policies and fierce competition.

TADA chief executive Sean Kim, in an interview with The Standard's sister newspaper Sing Tao Daily, said he has been to Hong Kong for business several times but the language barrier made riding taxis challenging for foreigners.

Kim added his "lack of proficiency" in English also made it embarrassing when he failed to effectively communicate with cabbies.

"When I was with my kid [in Hong Kong] last year, I just relied more on using online ride-hailing services, and that is when I realized the development opportunity of an online ride-hailing service platform in Hong Kong," he said.

Given the success of TADA in Singapore, Kim expressed confidence in gaining a foothold in the Hong Kong market, as the two cities share many things in common.

"Hong Kong has always been on our list," he said, adding the large number of taxpayers in the city will provide higher commercial value for the company.

TADA is considering working with some 3,000 to 4,000 vehicles in Hong Kong, Kim said, adding his platform can hold a major share in the market and will be "competing" to topple the No 1 player in the city.

"We take no commission ... it is very clear for the drivers to understand the benefit that they don't need to pay like 20 to 30 percent [of fares] that they are earning to the platform," he added, referring to what rival platform Uber collects per trip.

Kim said TADA will continue to make improvements in terms of demand and supply as well as platform support, adding the platform's success in Singapore could be a "playbook" for Hong Kong.

"We are more confident [now] with more financial support internally and we could establish a bit of brand awareness," he said.

Kim said he is not worried that Hong Kong has yet to establish a regulatory mechanism for online ride-hailing services as the company will first cooperate with local taxis.

He said the company is also open to sharing its operating experiences in Singapore, Thailand, or even countries without relevant government regulations.

However, Kim hoped Hong Kong would not emulate Macau, which practically banned online ride-hailing services as only one platform is recognized by the local government.

"We are also part of the transport ecosystem, and we are trying to comply with local government regulations to benefit public transport," Kim said.

He said the Hong Kong government's efforts to "find a better solution" to balance online ride-hailing services with the local taxi industry, such as taxi fleet licenses, have given the company confidence to develop business in the city.

The government announced last week that it will issue licenses to regulate online ride-hailing services and is leaning toward filing a legislative proposal next year.

Commissioner for Transport Angela Lee Chung-yan said the government will take reference from other countries and regions that require vehicles on ride-hailing platforms to have appropriate insurance and licenses, and for platforms to be registered locally.

Speaking on radio yesterday, Lee said the government is also considering mandating platforms to comply with customer due diligence requirements.

"Online ride-hailing drivers should also have basic pick-up experience and receive relevant training, and the government will decide whether to introduce new licenses depending on the public's demands for point-to-point transport services," Lee added.