WeChat Pay HK, with over 1000 drivers, and Alipay with over 1,500 drivers so far, have both launched free of charge and with plenty of incentives for the drivers.
An exciting transformation of Hong Kong’s beleaguered taxi industry is afoot as it embraces both cashless payments via WeChat Pay and Alipay while entertaining a possible partnership with rival Uber.
The industry’s cash-only culture is finally coming to an end with 2,500 drivers signing up to the two mainland e-payment giants, leaving Hong Kong’s Octopus out in the cold.
WeChat Pay HK, with over 1000 drivers, and Alipay with over 1,500 drivers so far, have both launched free of charge and with plenty of incentives for the drivers.
Octopus’ QR code payment method, even though familiar to Hong Kongers, comes with administration fees of 1% of Octopus payments.
“This time we asked Octopus to consider using taxi advertising to cover its administrative fees. We are still waiting for its feedback,” said Chan Man-keung, chairman of the Association of Taxi Industry Development.
“As far as I know, WeChat Pay hopes to secure half of the taxi market after three to six months while Alipay aims to win the support of 1,000 taxis in the short-run by targeting those which usually station at the airport and the cross-border checkpoints.”
Meanwhile, the acrimonious standoff between Hong Kong’s taxi drivers and Uber could be a thing of the past if the partnership approach by Kenneth She Chun-chi, Uber Hong Kong’s general manager, is entertained.
Fuelled by the Hong Kong Consumer Council’s report encouraging the government to allow ride-hailing vehicles, he said, “We are now studying whether there is room for Uber and the taxi industry to cooperate to jointly tap the e-hailing market.”
Ng Kam-wah, vice-chairman of the Association of Taxi Industry Development, said cooperation with Uber was under discussion, as long as drivers’ incomes were not affected.
“We think that there is room for the taxi trade to cooperate with Uber as this will be a win-win situation for us.”
The taxi industry stands to benefit from Uber’s marketing and positive image, while Uber will be able to operate legally with the taxi industry.
Hong Kong’s taxi industry image has been marred by rudeness, overcharging and ride refusals in recent times, while Uber drivers have been arrested for driving without permits and third-party insurance.
Uber and local taxis already cooperate in other Asian cities such as Singapore and Taiwan, however a taxi coalition has threatened to sue the government if the possible collaboration goes ahead.