Old HK taxi trick: extra cash just to get a cab when demand is high

By HK Lawyer AJ Halkes Barrister-at-Law

The old Hong Kong taxi trick of the need to add money to even get a cab when demand is high

I’m a fan of the Uber product. The issue is how it is positioning itself. Reliability and predictable outcomes matter for credibility.

As I understand it (Uber can tell me if I’m wrong), the nearest driver is offered the ride first, then the next, and so on. We know Uber can leave you waiting long after it has promised a pickup in a few minutes.

Drivers who are not interested must be ignoring the requests, and the UBER app keeps scrolling until someone accepts… or until nobody does!

Pre-tipping appears to be the chosen solution. Give the drivers a $ reason (in their pocket) to accept a ride rather than ignore it.

I prefer free markets to regulation; I have said that before. But this shifts the product promise away from “nearest driver” to “nearest driver who sees enough extra money to bother.” Suddenly getting an UBER fast becomes more expensive and perhaps slower.

Hong Kong’s taxi system remains dysfunctional; it carves the small city into zones, and there are many old and poorly maintained vehicles, often matched with old (or bad) drivers who tend to rent the cheapest cars by the day.

But does Uber send a confusing signal by moving to the age-old price-inflating and availability-cutting practices of the taxi industry?

The company needs to be careful about how it positions itself with the Hong Kong government and the public, including its fans! Odd comments and questionable framing have often not seemed to serve them that well in the past.

As to whether pre-tipping now makes this service more reliable, or just quietly changes it into a more expensive and slower option, not even provided by the nearest driver, remains to be seen.

#Uber #RideHailing #HongKong #FreeMarket #Taxi #GigEconomy #ConsumerChoice #Regulation

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