Key Takeaways
- Hong Kong boasts one of the world’s most comprehensive public transportation systems. However, the city lacks a legal framework for ridesharing platforms, which are playing an increasingly important role in the daily lives of residents.
- Data suggests that Hong Kong’s Pt2Pt transportation is plagued by a range of key deficiencies. Hong Kong has one of the oldest taxi driver populations in the world at 58 years of age, contributing to a worryingly high accident rate of 27% (i.e., the % of total accidents involving taxis). Additionally, digital payment adoption for taxis lags most other markets, with only 54% of active taxi drivers accepting Octopus. Although initiatives like the demerit point system have been implemented, there has been a growing number of complaints against taxis from 2020-23.
- The entrance of a ridesharing platform in Hong Kong in 2014 accelerated the decline in daily taxi trips. Having facilitated over 120 million trips over the past decade, evidence points to growing demand for improved Pt2Pt transport options in the city. Ridesharing services have the potential to offer numerous advantages over traditional taxis, including dynamic pricing, support for larger groups, and digital payment options. In fact, 87% of residents support the legalisation of ridesharing, with 69% believing that competition from new entrants will drive taxi service providers to enhance their service quality.
- Despite widespread public support, Hong Kong stands out as the only major APAC economy without a legislative model for ridesharing. This lack of regulation not only hinders competition but also prevents the city from adapting to modern transport demands, leaving it behind other international cities that have embraced new market entrants.
- To address these challenges, local policymakers should focus on optimising existing taxi services and legislating ridesharing. Improvements should include better accessibility, standards on driver and vehicle age, fare transparency, and enhanced monitoring. For ridesharing legislation, the government should evaluate successful models from other markets to develop a balanced regulatory framework that considers the needs of key stakeholders.
