South China Morning Post
March 7, 2005
Ten per cent of cabbies give fare discounts, says union
Elaine Wu
Ten per cent of taxi drivers could be part of unofficial "discount gangs" who accept fares below the meter rate, according to trade groups.
While there has been no official survey on the number of drivers who give discounts of 60 per cent to 80 per cent, union leaders said it was a growing trend. They estimate that 1,000 to 2,000 of the 18,000 taxi drivers in Hong Kong are part of this group.
They say one of the reasons behind the trend is the government's refusal to pass a law against bargaining by passengers.
A Transport Department spokesman said the government was not ready to legislate because the trade had not reached a consensus on the issue.
Meanwhile, cabbies continue to exploit a loophole in the law, which allows them to accept a fare that is lower than the meter rate as long as they do not offer their passengers a discount.
This has hurt those drivers who refuse to join the informal discount groups. Group members pay a few hundred dollars a month to receive business from passengers who call ahead for a discounted cab.
The head of the group usually takes orders by mobile phone and then calls his network of colleagues. Others use illegal radio frequencies to communicate, said Tse Ming-chue, vice-chairman of the Hong Kong Kowloon Taxi Lorry Owners' Association.
"These discount gangs are taking our business away," he said. "It's very unfair to taxi drivers and makes the whole city feel that if you don't get a discount on your ride then you are losing out."
Last year the police began stepping up enforcement against taxi drivers who offer discounts. The number of convictions in 2004 went up to 99 from 29 the previous year.
Liu Siu-fun, an assistant operations commander, said: "We have conducted more operations because we have received more complaints. That is why the numbers went up."
Taxi bargaining started after the Asian financial crisis when some drivers began giving discounts to long-haul passengers to encourage them to take more cabs, Mr Tse said.
March 7, 2005
Ten per cent of cabbies give fare discounts, says union
Elaine Wu
Ten per cent of taxi drivers could be part of unofficial "discount gangs" who accept fares below the meter rate, according to trade groups.
While there has been no official survey on the number of drivers who give discounts of 60 per cent to 80 per cent, union leaders said it was a growing trend. They estimate that 1,000 to 2,000 of the 18,000 taxi drivers in Hong Kong are part of this group.
They say one of the reasons behind the trend is the government's refusal to pass a law against bargaining by passengers.
A Transport Department spokesman said the government was not ready to legislate because the trade had not reached a consensus on the issue.
Meanwhile, cabbies continue to exploit a loophole in the law, which allows them to accept a fare that is lower than the meter rate as long as they do not offer their passengers a discount.
This has hurt those drivers who refuse to join the informal discount groups. Group members pay a few hundred dollars a month to receive business from passengers who call ahead for a discounted cab.
The head of the group usually takes orders by mobile phone and then calls his network of colleagues. Others use illegal radio frequencies to communicate, said Tse Ming-chue, vice-chairman of the Hong Kong Kowloon Taxi Lorry Owners' Association.
"These discount gangs are taking our business away," he said. "It's very unfair to taxi drivers and makes the whole city feel that if you don't get a discount on your ride then you are losing out."
Last year the police began stepping up enforcement against taxi drivers who offer discounts. The number of convictions in 2004 went up to 99 from 29 the previous year.
Liu Siu-fun, an assistant operations commander, said: "We have conducted more operations because we have received more complaints. That is why the numbers went up."
Taxi bargaining started after the Asian financial crisis when some drivers began giving discounts to long-haul passengers to encourage them to take more cabs, Mr Tse said.
