China struggles with rude drivers, low wages and ride-hailing competition

Hong Kong's taxi industry is at a crossroads, grappling with an aging workforce, low wages, and fierce competition from ride-hailing services like Uber.

Business owner Louis Ho recalls his struggles with Hong Kong's taxi drivers, who often refused to take him and his wheelchair-using mother to hospital appointments, Caliber.Az reports citing the foreign media.

"I didn’t even need the driver to assist with my mum or her wheelchair. I managed it all myself," says the 64-year-old, whose mother passed away in 2018.

Ho's experience reflects a widespread dissatisfaction among Hong Kongers with their city's taxi service. Complaints about rude drivers, refusal to accept passengers, and taking longer routes to increase fares are common. In response, the Hong Kong Taxi Council is launching a new initiative aimed at improving this image. The council plans to deploy "courtesy ambassadors" armed with "best-practice" pamphlets to taxi stands across the city.

Whether this initiative will be effective remains uncertain. With around 46,000 taxi drivers in Hong Kong, Ryan Wong, chairman of the Taxi Council, acknowledges that changing ingrained behaviors is a significant challenge. “This is not the first time we have attempted such a campaign, but driver feedback has been positive,” he notes.

Yet, skepticism persists among residents. A viral interview clip features a taxi driver claiming that passengers need to be educated rather than drivers, fueling doubts about the initiative's impact. For many Hong Kongers, past grievances still cast a long shadow, raising questions about whether a single campaign can truly transform the city's taxi service.

Amy Ho, in her 30s, recounts her decision to stop using taxis after an encounter she found particularly off-putting. “I didn’t realize I had requested such a short trip. As soon as I reached my destination, I scrambled for cash,” she recalls. “It was only a matter of seconds, and the driver said, ‘Can you stop dragging on, auntie? I can’t believe you need a ride for such a short distance and you can’t even afford it!'”

IT worker Kenny Tong now avoids taxis whenever possible, using them only about three times a month. He describes his experience as having to “bow, wait for the driver to lower the car window,” and then check if his destination fits the driver's route for the day. Tong also expresses frustration with drivers who don’t use GPS, despite having “multiple phones on the dashboard,” and who grumble throughout the journey.

Despite the rise in complaints, with about 11,500 filed last year—a 11% increase from 2019—most passengers do not bother due to the time-consuming process. A recent complaint involved a tourist from Zhejiang who claimed she received only HK$44 in change after giving a cabbie HK$1,000 for a HK$56 ride. She reported the issue to the police but was unable to recover her money due to insufficient evidence.

The issues with Hong Kong's taxi industry extend beyond poor behavior. The sector is grappling with high costs, increased competition, and complex bureaucracy. As the Hong Kong Taxi Council launches its new courtesy campaign, many wonder if these deep-rooted problems can be addressed by a single initiative.

In Hong Kong, where taxi licenses have been capped at around 18,000 since 1994, drivers face increasing costs and competition. License holders often rent out their licenses, and Leung Tat Chong, a taxi driver with over two decades of experience, reports that the rental fee for a 12-hour daytime shift is approximately HK$500, not including fuel. On average, drivers earn HK$500 to HK$800 per day, making it difficult to sustain their livelihoods, especially during quiet periods when passengers are scarce.

Leung acknowledges that while the rising costs and limited passenger flow contribute to poor service, they don’t excuse it. "To make a living, some drivers are not as patient and they have no capacity to improve their services," he explains.

The industry also contends with fierce competition from Uber, which has become popular since its entry into the Hong Kong market in 2014. According to Uber, half of Hong Kong's 7.5 million residents have used the app. The taxi industry argues that Uber's presence is unfair, as its drivers do not adhere to the same regulations, including obtaining special licenses.

In response, some taxi drivers launched a vigilante sting operation against Uber drivers in late May, which faced public backlash. Many passengers prefer Uber for its perceived better service and user experience, which highlights the taxi industry's struggle to modernize.

Chau Kwok-keung, chairman of the Hong Kong Taxi and Public Light Bus Association, admits that the industry has been slow to embrace online hailing and digital payments, with most drivers still accepting only cash. "We underestimated the impact of ride-hailing apps," Chau says. "Passengers are willing to pay more for a better riding experience."

The Hong Kong taxi industry grapples with a declining workforce and stagnant wages, contributing to its reputation problem. The average age of taxi drivers in the city is nearing 60, and with fares having been raised only four times in the past decade, attracting new talent remains difficult. In 2023, urban taxi drivers earned an average of HK$22,000 per month, roughly 10 per cent above the city’s median income. Yet, Hong Kong ranks 45th globally for taxi fares, according to Numbeo, a cost-of-living database. "Many think that only poor people become cabbies, and it’s the last resort when one meets financial difficulties," says Leung Tat Chong, a long-time driver. He believes that stricter requirements and more training could help improve the profession’s image.

In response to these challenges, the industry is set for significant changes. A demerit-point system will be introduced in September, potentially leading to license suspensions for drivers convicted of misconduct. Additionally, a new taxi fleet system will be implemented, featuring flexible pricing and the requirement for online booking, personal rating systems, and digital payments. Five new licenses have already been issued as part of this initiative, covering a fleet of 3,500 taxis.

Despite these upcoming reforms, drivers and passengers are skeptical. “If we provide good service, the industry will grow and there will be more passengers,” Leung says, reflecting the hope that these changes will address longstanding issues and modernize Hong Kong's taxi services.