Uber Gets more Competitive with Taxis

Uber will be raising its fares from Wednesday, still cheaper than taxis

Uber still isn't legal in Hong Kong, though there are many who use the service.

Starting on Wednesday the car-hailing service will be raising its fares so that the starting fare is HK$18 on Hong Kong Island and Kowloon, while it will still be HK$8 in the New Territories.

Currently taxis start at HK$24, so Uber is still less expensive -- as long as there isn't a surge in requests for cars.

Hong Kong taxi drivers can be rude or difficult to deal with

It seems Uber is targeting customers who want to be driven longer distances as it will be cheaper overall, compared to those going shorter distances.

There will also be a charge of HK$2 per minute after the driver has waited at the pick-up point for three minutes. That will definitely make it more efficient for Uber drivers to pick up more people.

The Hong Kong government is still stalling on establishing regulations to make it possible for Uber to function legally in Hong Kong despite many members of the public clamouring for the service. They are fed up with instances of rude taxi drivers who choose to reject passengers or will charge excessive amounts after the MTR is closed. Then there's the aging cars they drive, where passengers sink into the seats at the back, some with the shock absorbers next to non existent. And yes there's the lingering cigarette smoke...

Meanwhile Uber drivers seem to be making a pretty penny. About two weeks ago I chatted with one who started driving full time a few months ago, as he could make HK$30,000 to HK$40,000 a month.

The car-hailing service still isn't legal in Hong Kong

As an early riser, he could do as many as eight trips in the morning to get people to work, and then take a break mid-morning until the afternoon and evening rush. And if he was particularly busy today, he would not hustle as much the following day, basically making his own hours.

The driver added he used to be in sales and here he didn't have to deal with the hassle of pleasing customers and office politics -- as long as he got clients from A to B there were no complaints. Not bad for just driving people around. And he will probably be making more money come Wednesday.

The government is desperate for the taxi industry's support, which is why it has procrastinated on dealing with Uber. But if fewer people take taxis, which many are, then the industry will have no choice but to reform and give a better service. That's all we want in the end...