Uber is here and it is going to stay even after the police stepped in and arrested several employees and drivers. The wrath of taxi owners and drivers notwithstanding, there is a demand for Uber-type services in Hong Kong where commuters are getting tired of shoddy taxi services.

Taxi drivers in Hong Kong are not exactly rude. But most of them are far from being helpful. Refusing fares has become increasingly common and the cabins of most taxis are decidedly dirty and smelly.

Operating a car hire service without a license in Hong Kong is illegal. The law is there to protect passengers not insured against injuries when riding in unlicensed taxis. But instead of clamping down on car hire services, it may seem more reasonable for the government to consider the need of commuters and draft regulations to incorporate online car hire services into the overall transport system.

Taxi owners and drivers in some other cities have staged strong public protests, sometimes violently, against such services, which they complained were stealing their business. The French government has caved in to the demands of angry taxi operators.

Hong Kong is a free-market city where competition is supposed to be encouraged, not snuffed out. Uber and other e-hailing services offer Hong Kong commuters additional choice. For that reason alone, they should be welcomed to compete with taxis. More competition can lead to a better and more efficient taxi service. At least, that is the free market logic.

This does not mean that the government should do nothing. However, its job is not to clamp down on competition but to regulate and supervise the online calling services' drivers to ensure that their cars meet the stipulated safety standards and that the passengers are property insured.

The law in some cities in the United States requires Uber to treat their drivers as regular employees. This way, Uber has to not only pay its drivers all the benefits they are entitled to as workers but also assume the responsibility for the conduct and safety of those drivers and their passengers.

The government, of course, realizes that allowing online calling services to operate in Hong Kong is more than a business decision. The powerful groups that represent taxi owners who have paid millions of dollars to acquire a license are going to put up a stiff fight. A taxi license in Hong Kong now costs about HK$7 million, which is money enough to buy an apartment of a decent size in an urban area.

But e-hailing services have become a global trend. They are gaining popularity in many cities in the US, Europe and Asia. In Shanghai, for instance, it has become increasingly difficult to hail a taxi on the street because many taxis have been booked online.

Hong Kong will need to see what it can do to improve the current situation.

Contact the writer at hongliang@chinadailyhk.com

(HK Edition 08/13/2015 page6)