Hong Kong's taxi sector is gearing up for a legal battle against the government, seeking a court order to prohibit ride-hailing platforms that enable unauthorized ride services. Taxi industry representatives are soliciting funds from taxi owners and drivers, requesting individual contributions of HK$1,000 to finance a judicial review.
Lam Chi-Chung, representing an informal group of taxi proprietors, confirmed the initiative. He stated that the initial fundraising goal is at least HK$10 million, with expectations of further financial support.
The legal action will contend that ride-hailing platforms facilitating unlicensed transportation services are in violation of Hong Kong law and should be banned. Furthermore, the lawsuit will seek increased government protection of the taxi industry's exclusive operating rights.
This move stems from growing frustration within the taxi industry regarding the increasing prevalence of unregulated ride-hailing services.
Earlier this month, Cheng Hak-wo, known as the "King of taxis" and founder of Chung Shing Taxi Limited, one of Hong Kong's largest taxi companies, appealed to Chief Executive John Lee Ka-chiu to crack down on illegal ride-hailing or face "further action."
The Hong Kong Taxi and Public Light Bus Association acknowledged that many of its members have been approached regarding the fundraising effort. While the association respects the opinions of its members, its chairman, Chau Kwok-keung, expressed doubt about the potential success of the legal challenge. However, he conceded that the industry has waited too long for government action.
In an interview with Sing Tao Headline, The Standard’s sister publication, Lam argued that ride-hailing platforms that arrange paid rides are in breach of a 2020 Court of Final Appeal ruling and should have been outlawed a long time ago.
He mentioned that many drivers are prepared to donate more than HK$1,000 due to their dissatisfaction with lost revenue. The group is still working out the details of the fundraising process to avoid any legal complications.
Ronny Tong Ka-wah, a member of the Executive Council and a senior counsel, stated that such fundraising activities would not be considered "maintenance and champerty" under Hong Kong law, as the contributors have a direct interest in the case.
However, he cautioned that judicial reviews are only granted if government decisions violate legal or constitutional procedures, and not simply because of disagreement.
The government is currently in the process of drafting regulations for ride-hailing platforms. Lam stated that the legal action will proceed if the proposed framework legitimizes what they consider illegal services.
He welcomed Chief Executive Lee’s recent affirmation that unlicensed ride-hailing remains illegal.
Tong emphasized that the government must restrict illegal transport services, regardless of public convenience, due to safety and insurance concerns. However, he deferred to the government on the specifics of how to regulate ride-hailing platforms.