Chief Executive John Lee pledges regulatory framework for online platforms, but urges taxi drivers to improve service in face of criticism
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 documents had always given cabbies exclusive rights.
Some industry leaders recently called on the government to buy back the licences for HK$5 million (US$637,100) each. They argued that the documents’ value had consistently depreciated with the rise of online ride-hailing platforms such as 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.
When asked if he would consider the suggestion, Lee said: “We must be very cautious when it comes to using public funds.”
