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.”
He argued that the licences had given the sector an “exclusive privilege” to operate the vehicles, such as using the taxi ranks, picking up passengers in designated restricted areas and getting customers from the street.
“These usages of the taxis, which are granted for a long time under the exclusive privileges of the licence, have led to a direct profit on these licences. It has also allowed taxis to gain profits under this form of operation for a long time,” he said.
