UBER Hikes Fares in HK Amid Some Disputes

On Monday, Uber Technologies Inc., an American ride-hailing company operating in 633 cities around the world, has increased the minimum fares in its Hong Kong rides by up to 80% after an assessment of its business in the place, the company said.

The California-based technology company said the price increase would be beneficial to drivers as they keep most of the fares.

HK Fees Hike

Effective today, UberX ride, the company’s most affordable car option, increased from HK$25 to HK$45. HK$40 is the minimum fare, and it comes with an additional booking fee of HK$5, which it said would help cover administration costs, bringing the total minimum fare to HK$45, or US$5.75. Once a certain extent of time and distance is covered, Uber will charge HK$6 per kilometer, and HK$1 per minute on top of that. UberX uses smaller and economy car models at a lower rate and is well-known in Kowloon and the New Territories.

In Hong Kong Islands,  the minimum charge for an UberX ride increased from HK$30 to HK$40. The new booking fee will also be applied.

On the other hand, UberBLACK, the company’s luxury which provides professional drivers and pricier cars,  would start at HK$60 instead of HK$50, plus the HK$5 booking fee.

The new charging model for UberAssist, wherein drivers are trained to give additional assistance to elderly and disabled people, will be similar as that for UberX.

Uber, which recently suspended its services in the neighboring Chinese city of Macau, said that the adjustments were based on the assessment of its business in Hong Kong, and in response to driver’s call for better income security.

Meanwhile, rides via taxi start at the base fare of HK$24, or $3.07, and then HK$1.70 after every 200 meters, or 1 minute in traffic. In short, while longer rides will likely be priced roughly similar between the two services, shorter rides will be more costly when hailed through Uber.

“We are committed to continue our investment here in Hong Kong,” the company said in its statement.

The ride-sharing firm last adjusted the fares in March 2016 when it slashed the rates for UberX rides in Kowloon and the New Territories.

Uber Struggles and Issues

Since it started operations in the city in July 2014, Uber has faced struggles in the taxi trade and is still struggling in its battle for legalization.

In August 2015, seven Uber drivers were arrested for not having permits and driving without third-party insurance. Police also searched the company’s offices in Hong Kong after complaints from local taxi drivers. Two of the seven drivers were fined, and had their licenses suspended for a year in January last year.

In March 2017, the remaining five Uber drivers, who were found guilty of driving without a permit and third-party insurance,  were fined HK$10,000 each, and are banned from driving for one year. Uber said it would help the drivers to make an appeal, and criticized authorities for not being to keep with innovation.

Last May this year was the latest crackdown of Uber in Hong Kong when police arrested 21 drivers for illegal car-hiring in the largest operation against Uber of its kind.

Hong Kong is not the only Asian city where Uber  has run into regulatory problems, as it also faces legal inspection in Korea, Japan, and Taiwan.

Uber in Hong Kong has no serious local competitors providing app-based ride-hailing. As a result, it has slightly more freedom to increase prices than in Southeast Asia and India, where it faces sheer competitions from competitors, Grab and Ola, respectively.

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