Singapore-based ride-hailing service to enter Uber-dominated Hong Kong market
- Tada’s CEO says city’s robust economy and dense population presents an ‘immense potential’ for the firm
A Singapore-based ride-hailing platform will join the Uber-dominated Hong Kong market by year end, as the government maps out a regulatory framework for the sector.
Tada, which offers zero-commission ride-hailing services, said the move marked its latest attempt to extend its presence beyond Southeast Asia after obtaining a licence in Thailand earlier this year.
Tada CEO Sean Kim said his firm saw immense potential in Hong Kong with its robust economy, dense population and strong demand for reliable and efficient technology solutions.
“Expanding into Hong Kong represents a unique opportunity to bring our technology vision and customer-centric services to another dynamic and bustling Asian metropolis,” Kim said.
“We welcome the Hong Kong government’s plans to regulate the ride-hailing space,” he added.
Headquartered and founded in 2018 in the city state, Tada is one of the five ride-hailing platforms licensed by Singapore’s Land Transport Authority.
The platform promises stable fares for passengers, user-friendly app, as well as a higher share of pay for drivers.
“As established licensed operators in Singapore and Thailand, we understand how a well-managed regulatory environment can help the industry and society to evolve and grow,” Kim said.
The company said it was exploring opportunities to collaborate with key partners in the city, and was committed to building collaborative relationships with policymakers and government departments to address potential concerns.
The company did not reveal how much it would invest and the numbers of vehicles that would operate in the city.
Hong Kong has three services currently operating in the city, including US-based Uber, Beijing-based Didi Chuxing as well as Amap operated by Alibaba Group, which owns the South China Morning Post.
Uber runs a matching service between drivers and passengers, which cabbies have labelled as unfair competition because many of the drivers do not possess hire-car permits.
In Hong Kong, vehicles offering paid services must have a hire-car permit.
There are over 216,000 registered Uber and Uber Taxi drivers. But Uber Taxi is legal because the vehicles possess the relevant permits.
There are 46,000 taxi drivers in the city, with 18,163 cabs on the road.
While Uber and its drivers share the fares of customers per ride, Tada only charges drivers a platform fee and not any commissions, according to the Singapore-based firm.
The Transport and Logistics Bureau will map out the regulatory regime of the ride-hailing services in Hong Kong by regulating online service platforms and increasing punishment of offenders. It will launch premium taxi fleets to improve quality services.
The Transport Department will kick-start a study on commuter needs later this year to decide the details of the regulatory mechanism within a year, such as the types and number of vehicles to be allowed and licensing requirements for the platforms and drivers.
