Franchised taxis proposed

April 17, 2019

The Government will gazette a bill on April 26 to establish a regulatory regime to introduce a franchised taxi service.


The move meets the community’s new demand for personalised and point-to-point public transport services of higher quality and with online hailing features.


The Government will introduce 600 franchised taxis under a trial scheme and grant three franchises by open tender, with each allowing the operation of 200 vehicles to provide a franchised taxi service.


The franchise will last for five years and will be non-transferable and non-renewable.


As the franchised taxis will be operated through a franchise model, the Government will be able to clearly prescribe the service levels and set service standards through the franchise terms.


It can also impose penalties on the operator or even revoke the franchise if an operator and its drivers fail to meet the prescribed service levels or standards.


The Transport & Housing Bureau said franchised taxis and ordinary taxis will have different market positioning in the public transport system, with the former being an enhanced complement to the latter.


Ordinary taxis will continue to constitute the vast majority of taxi services and their fare level is more affordable to the general public, it added.


The Franchised Taxi Services Bill will be tabled at the Legislative Council on May 8 for its first and second reading.

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