The Future City Vision (FCV) held the “Future City Dialogue Series — Exploring the Future of Personal Mobility Service in Hong Kong: Regulatory Framework and Governance — Balancing Innovation and Public Interest – Taxis and Car Hailing” on 21 September 2024. The aim was to invite individuals from various professional backgrounds to engage in dialogue about social livelihood development, fostering positive impacts and changes through community exchange.
The dialogue featured notable guests including Professor Anthony Cheung, former Secretary for Transport and Housing of Hong Kong; Dr. Tony Sze, Associate Professor from the Department of Civil and Environmental Engineering at The Hong Kong Polytechnic University; Legislative Council member Ir Gary Zhang; Nicole Lee, Head of Public Policy and Government Affairs at Uber Hong Kong; and Ir Wilson Wong, Founding Chairman of the Future City Vision, to discuss issues of system innovation and regulation concerning taxis and car hailing services. The discussion aimed to explore how to enhance the efficiency and quality of public transport while balancing the demands and interests of different transport services.
New Vision for Future Urban Transport: From Car Hailing to Smart Mobility
In recent years, car hailing services have proliferated globally. As an international metropolis, Hong Kong is renowned for its efficient transport system. However, the emergence of ride-hailing services has significantly impacted the transport system, particularly the taxi industry.
Passenger transport services require appropriate regulation to ensure passenger safety and service quality. This position respects existing transport regulations and expresses a clear stance against illegal “white-label” vehicles. Notably, taxis have the highest complaint rate among various transport modes, highlighting the challenges faced by traditional service models.
In a Legislative Council meeting held in July this year, the Transport and Logistics Bureau proposed regulating car hailing platforms through legislation, clarifying licensing requirements and conditions, with the goal of formulating legislative recommendations by 2025. The Transport Department will later investigate passenger demand and changes, reviewing progress within six months and completing the study within a year, depending on the results to reassess the types and numbers of compliant vehicles that can be provided through platforms alongside licensing requirements.
In-Depth Discussion and Professional Analysis: Sketching the Future Transport Vision
During the event, a question was raised regarding the future prevalence of autonomous vehicles and the direction current policies should take to embrace these transformative changes. Indeed, from car hailing services to autonomous vehicles and smart mobility, more discussion is needed, and policymakers must possess long-term vision and determination to promote the comprehensive development of “smart transport.” The dialogue covered the following areas:
1. System Innovation: How to address the competition between taxis and car hailing services through system innovation to safeguard public transport choices.
2. Effective Regulation: Exploring how to establish a fair regulatory framework ensuring the safety and reliability of all transport services.
3. Balancing Public Interest: How to improve efficiency while addressing the needs of various stakeholders, including taxi drivers, car hailing drivers, and the general public.
4. Future Mobility Models: Discussing the applications of intelligent transport systems and autonomous vehicles and their implications for the future of Hong Kong’s transport.
Insights from Participants on the Demand for Car Hailing in Hong Kong
During the event, approximately 50 participants conducted an initial poll regarding their use of point-to-point transport services. The results showed:
– Over 80% of participants reported having used car hailing services, indicating that these services can quickly meet public transport needs and demonstrating significant market potential.
– Among options during off-peak hours, 33% preferred to hail taxis on the street, 10% opted for ride-hailing taxis (metered fare), 23% chose ride-hailing taxis (platform price), and 33% selected ride-hailing private cars. During peak hours, 44% would choose ride-hailing private cars, while only 25% would hail taxis on the street. When asked about the primary reason for choosing ride-hailing services, 73% of respondents cited “faster and easier to book,” while only 19% chose “good service attitude.”
In a subsequent round of voting, participants further investigated regulatory issues surrounding ride-hailing. The results indicated:
– 96% of participants believed the government should legislate to regulate ride-hailing, with only 1 dissenting and 1 offering no opinion.
– When asked if ride-hailing private cars would still be necessary after legislating ride-hailing taxis, 92% believed they would still be needed, while 4 remained neutral.
– 85% agreed with licensing current ride-hailing private cars, 5 disagreed, and 3 had no opinion.
– Regarding whether licensing ride-hailing cars would significantly impact the taxi industry, 44% believed it would have a considerable effect, 37% thought it would have little effect, 12% reported no impact, and 4 were neutral.
– Only 8% supported the view that the government should protect the interests of taxi license holders by not issuing additional taxi licenses, while 81% opposed this.
– When asked if the government needed to repurchase existing taxi licenses to open the market for ride-hailing private cars, 73% believed it was unnecessary, while only 15% thought it was needed, and 12% had no opinion.
Outlook and Recommendations
To promote the healthy development of car hailing services in Hong Kong, the following aspects are crucial:
1. Flexible Supply: Adjusting the number of vehicles based on market demand.
2. Dynamic Pricing: Modifying prices according to supply and demand conditions.
3. Reasonable Requirements: Establishing appropriate standards for drivers and vehicles.
4. Platform Regulation: Ensuring compliance in the operation of ride-hailing platforms.
5. Establishing a Clear Regulatory Framework: The government should create clear laws and regulations to govern both car hailing and taxi services, ensuring all operators adhere to the same safety and service standards.
6. Balancing Stakeholder Needs: When formulating policies, the needs of taxi drivers, ride-hailing drivers, and the public should be considered to ensure all stakeholders benefit.
7. Regular Policy Evaluation: The government should periodically review and assess the impact of transport policies, making adjustments based on market changes and public needs to ensure the effectiveness and adaptability of policies.
Encouraging Insights from the Dialogue: Contributing to Hong Kong’s Sustainable Development
The “Future City Dialogue” event successfully recruited over 50 participants, and various attendees offered profound insights that were truly inspiring. We believe that good civic engagement is a crucial element in the development of a world-class city. Therefore, FCV gathers talents and opinions from different professional sectors while creating space for collective learning, experiencing, discovering, and innovating. We hope to serve as a bridge between the government and society, discussing Hong Kong’s long-term planning with pragmatic thinking, injecting vitality into the diverse and integrated development of local communities, and creating a better living environment for future generations.