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Old Aug 11, 16, 8:41 pm
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Originally Posted by garykung View Post
FWIW - Transport Department recently issues several licenses:

Hong Kong's policy on transportation is not anti-road-transport. The main reason is about government revenue.

Although most operators are private parties, their operations are regulated by the Government. In order to operate, they have to pay significant license/franchising fee to the Government. To the Government, taxi is never a major mode of transportation. Instead, it is used to supplement existing public transportation.

So why is the license as expensive as an apartment? The Government does not get any portion of the income after the license has been issued (except income tax and necessary fees). As the Government controls the number of licenses issued, the heavy license fee is to justify the Government's need in revenue.

Then why is Uber illegal? Regardless what the law says, the main reasons? The Government can't control the situation and get a piece of the pie.
FYI, these are not new issues but merely re-sales so the government gets pretty much nothing out of these bids, so your information is not exactly correct

Uber is technically not totally illegal in HK. A lot of Uber blacks are licensed to carry paying third-party pax. It's just that this license is very expensive so some of them and I guess most UberXs don't have them, so if accidents happen the passenger cannot be compensated from insurance for the car. The government claims to be 'doing good' for HKers by cracking down on Uber.

In fact, the crackdown was perceived as just a show to comfort those with vested interests in the taxi industry. They've hardly cared since - it was the government that invited Uber to set up its game in HK to begin with.

And going even further, Uber model is not quite sustainable in HK as heard from a lot of negative sentiment from drivers. There can hardly be a 'rideshare' model in HK - streets are congested, parking is at an extreme premium, gas and maintenance costs are high - most UberX drivers have been making little and not been satisfied much.
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