Ride-hailing operator arrives ahead of government plan to regulate services next year. — SCMP
A Singapore-based ride-hailing service provider has launched in Hong Kong ahead of a government plan to regulate operators, with the newcomer providing fresh competition for market leader Uber.
Tada, which touts a zero-commission model for drivers, began operating in the city on Thursday and will allow customers to pay by cash or credit card in its beta launch covering Hong Kong Island, Kowloon and the airport.
The platform will not serve the New Territories.
The Transport and Logistics Bureau in July proposed to establish regulations for ride-hailing services next year, which would focus on overseeing online platforms and strengthening penalties for violations.
Newly appointed transport minister Mable Chan said on Sunday she would prioritise residents’ needs when designing regulations.
She noted that residents valued the convenience and service provided by point-to-point transport and said she hoped to bring about positive changes by listening to different industries and the public.
The Transport Department did not comment on Wednesday when asked about Tada.
The department said it was conducting research to assess the supply and demand of personalised point-to-point transport services.
“This includes gathering public opinions such as telephone surveys and on-site questionnaires to understand passenger needs and preferences, as well as considering operational models and regulatory approaches,” a department spokesman said.
He added the government would formulate legislative proposals for regulating ride-hailing platforms, compliant service vehicle categories and numbers, as well as licensing requirements for platforms, vehicles and drivers in 2025 based on research findings and stakeholders’ input.
Ride-hailing services have been the subject of fierce debate since Uber debuted in the city in 2014.
In Hong Kong, it is illegal for motorists of private vehicles to transport paid passengers without a hire-car permit.
Ride-hailing services such as Uber are unregulated.
The existing hire-car permit quota is capped at 1,500 but Uber has more than 10,000 active drivers monthly.
Uber and Uber Taxi have more than 216,000 registered drivers. But Uber Taxi is deemed legal as its vehicles hold the necessary permits.
Hong Kong has 46,000 taxi drivers operating 18,163 cabs, while the sector has long complained of unfair competition with the ride-hailing leader.
The Post has reached out to Uber for comment on the newcomer’s arrival in the market.
Tada did not say how many drivers and cars it has recruited so far, but its app shows it is recruiting both private vehicles and taxis. The company said it would not charge any commission from drivers.
Uber charges a certain percentage of each trip as a commission.
Tada also did not say whether the drivers have secured hire-car permits.
Tada CEO Sean Kim said Hong Kong’s dynamic economy, dense population and strong demand for transport were key factors in choosing it as a location to set up operations, a move he said was a pivotal step in the platform’s expansion plans.
“By focusing initially on key areas, we aim to provide quality service and a positive experience, while gathering feedback to refine our offerings. This beta launch is the first step towards our broader expansion across Hong Kong,” Kim said.
Other service providers in the city are Beijing-based Didi Chuxing and Alibaba Group’s Amap. Alibaba owns the South China Morning Post.
Tada applies a booking fee of HK$8 (US$1) for rides under HK$100 and HK$9 for those over HK$100, while Uber and Uber Taxi charge HK$17 and HK$7.5 per ride, respectively.
New Tada app users can enjoy discounts of up to HK$240, with a 12% reduction on their first five rides capped at HK$25 each. They can also benefit from a HK$58 discount on two airport trips, effective until January 31.
The platform will also roll out extra rewards through collaborations with credit card issuers. – South China Morning Post
