Service commitment should be linked to increase in taxi fares
Hong Kong’s taxi industry has raised eyebrows with a request for a hefty 17 per cent increase in urban fares, citing lingering after-effects of the pandemic and higher operating costs. The rise, under review by the Transport and Logistics Bureau, would push the flag-fall charge for urban taxis up HK$5 to HK$3), and unify the green New Territories and blue Lantau Island fares at $28. Whatever the fare increase, it should come with strings attached – not least of which should be a commitment to improve service quality.
The plan would raise fares nearly 17 per cent for urban taxis, 15.4 per cent for New Territories and 11.7 per cent for Lantau, while the incremental charge after flag fall would rise 10 to 20 HK cents depending on the taxi colour. Commissioner for Transport Angela
Lee Chung-yan has told legislators authorities would strike a balance between the financial sustainability of the taxi sector and the public’s acceptance of an increase when considering the proposal. They also would weigh factors from vehicle supply and passenger waiting time, the gap with public transport charges, and length of journey.
The pressures on the city’s fleet of 18,163 taxis have been significant, with competition from ride-hailing services such as Uber, and higher costs of insurance, up 60 per cent in the past five years, and repair and maintenance, up about 30 per cent.
While these pressures are real, and we are sympathetic, something must be done to improve the poor service, including being ignored by drivers, price gouging after midnight and shabby vehicles. Rudeness topped the complaints list in a 2023 taxi survey, 37 per cent of whom rated their service as “unsatisfactory” and 8 per cent “extremely unsatisfactory”. The service deteriorated sharply during the pandemic. Just 55 per cent of passengers rated their taxi rides as satisfactory, down from 70 per cent in 2019. Authorities also are rightly weighing stiffer penalties for repeat offences such as overcharging or refusing fares, steps to improve the vehicle quality and adding six-seaters to the current four- and five-seat fleet.
Hong Kong residents also face the same pressures hitting the industry, such as inflation, the end of pandemic subsidies for utilities and other growing costs. Lawmaker Scott Leung Man Kwong worried fare increases could lead other businesses to raise prices. “Especially when the taxi industry’s image is so negative, if it can’t fix its quality problems, people will just opt for alternatives.”
Hong Kong’s taxis are vital to the functioning of the transport system, making 720,000 journeys a day. They are often the first experience a tourist encounters on arrival in the city. For visitors and residents alike, attention to improving the quality of service could help soften the blow from having to pay more for the ride.