Uber in Hong Kong is launching its Uber Flash service Tuesday to bring back to Hong Kong commuters on-call, on-the-go, online cab-hailing services in the city. Cab riders and commuters will be able to hire UberX transport vehicles and taxis with this upcoming service.
The taxi-hailing service company is teaming up with local taxi operators, Tin Shing Motors and Tin Shin Taxis, to continue serving Hong Kong commuters and avoid being shut down.
This move is Uber's second-bid attempt to stay in business in Hong Kong and take on legal status. A source from the Hong Kong government confirms this move should be within the legal limits of the law with regard to taxi operators in the bustling city.
In keeping with the usual mechanics of the company, commuters will be able to hail a ride on their existing Uber mobile application. The transportation network company expressed that it "looks forward" to working closely with the city's taxi industry and improve transportation services. The ride-hailing service also aims to provide better "economic opportunity" and enhance driver efficiency.
For as long as the fare for Uber service is based on an agreed-upon amount between the passenger and the driver before the ride commences, as opposed to being based on the meter, Uber operations in the city will be considered compliant with the law.
There are more than 18,000 taxis providing transport services in the city, and the two companies now allied with Uber have a combined total of 28 taxis operating in the city. As per Hong Kong Transport Department data available, this number points to 0.15 percent of all the taxis serving the city.
Despite the demand for ride-hailing services in the city, the need has not translated into moves legalizing non-traditional transport providers such as Uber. There have been calls to have such services be made legal, but at the moment, private cars for hire that provide the service are considered illegal. Operating transport services without a hire permit is unlawful in Hong Kong.
In July of last year, Uber drivers have been fined for providing rides-for-hire services. The penalties range from a hefty HK$3,800 to HK$4,500. To note though, the city government has not at the moment taken legal action against Uber service.
But Dr. Hung Wing-tat, who used to be the Hong Kong Taxi Council chairman, expressed that Uber is merely "using" the legality of taxi operators to "cover up" the ride-hailing company's "illegality."
However, the former taxi council chairman also added that the transport industry would welcome Uber if it operated under legal parameters.
Jeremy Tam Man-ho from the city's Civic Party pointed out that the government should take action in regulating online taxi services which are starting to come into the service transportation picture. He said such services, as well as regular taxi operators, need to be regulated to promote fair competition.
Uber has been working to develop cooperation with taxi services in the city since 2014. It had started providing taxi hailing services through its mobile app but had to close down in 2016.
So the recent partnership with local taxi operators to bring in Uber Flash may just be in time.
The launch date for the new Uber Flash service is set for the upcoming March 5.
