The government has finally committed to regulating these ride-hailing platforms, promising a legal framework within the year. It has also launched a premium taxi fleet scheme, granting permission for a handful of operators to modernise and professionalise the industry. These are welcome steps.

But looming over the debate is a question no official wants to face head-on: what should Hong Kong do about its taxi licences – some of which were sold for more than HK$7 million (US$891,800) but are worth much less now?

Unsurprisingly, some licence holders are calling for a government buy-back. Proposals in the past have included rebuying taxi licences at auction prices, but there are more ambitious demands, and one estimate puts the cost of buying back all 18,000 licences at tens of billions of Hong Kong dollars. One recent proposal is for the government to repurchase the licences at HK$5 million each, despite market resale prices having fallen below HK$2 million.

Let’s be clear – a taxi licence is not a government bond nor a retirement plan. It’s a business permit. Somewhere along the line, speculation hijacked what should have been a regulatory instrument. What was meant to certify public service providers became a prized asset class for investors. That might sting for some, but markets rise and fall. No one bails out a corner shop because a mall opens nearby. Why should it be different for taxi licences?