HONG KONG, October 26 – New efforts by Hong Kong’s five licensed taxi fleets to recruit drivers are facing significant headwinds, highlighted by a widely circulated online advertisement offering a base monthly salary of just HK$13,000 (approximately US$1,660). The meager guaranteed wage, coupled with stringent working conditions, has sparked an intense debate among industry insiders and the public, casting doubt on the government-backed initiative’s ability to stabilize the city’s critical transportation sector.
The controversy follows the official launch of all five approved taxi fleets in July, an endeavor intended to modernize service quality and professionalism. However, reports suggest the fleets are struggling to meet their operational goals due to difficulties in hiring sufficient personnel.
Recruitment Terms Spur Industry Criticism
The contentious recruitment notice, posted recently on the “Taxi Driver Information Network Taxi” Facebook group, did not specify which fleet was hiring, but outlined terms for a full-time, long-term position. The job requires six workdays per week, with ten-hour shifts (either 7 a.m. to 5 p.m. or 7 p.m. to 5 a.m.).
Beyond the HK$13,000 minimum salary, the compensation package includes a potential monthly performance bonus of up to HK$5,000. Crucially, drivers only qualify for a 50% commission on fares after achieving a daily revenue target of HK$1,800.
Detailed requirements for drivers stipulate strict adherence to professional appearance, including wearing a shirt and trousers, along with expectations for punctuality, safe driving, cleanliness, and courteous behavior—including actively assisting passengers with luggage and operating car doors.
When inquiring under the pretense of being a potential recruit, a local media outlet confirmed the advertised conditions were accurate. A significant caveat was revealed: if a driver fails to meet the HK$1,800 daily target, the company bears the cost of fuel or electricity. However, once the target is surpassed, the driver must split the revenue and associated energy costs with the company.
Industry Experts Question Fleet ‘Sincerity’
The meager pay and demanding targets have drawn sharp criticism from industry representatives. Stephen Chow Kwok-keung, Chairman of the Smart Mobility Federation, told local media that the offer “completely lacks sincerity” in attracting professional drivers.
“A diligent driver can easily earn between HK$20,000 and HK$30,000 per month,” Mr. Chow noted, emphasizing that the advertised terms are fundamentally unattractive compared to the earnings potential of independent taxi operators who rent their own vehicles.
Many online commenters echoed this sentiment, arguing that drivers could earn significantly more by renting a cab independently, stating, “Why work to hit $1,800 a day for $13,000 when you can rent a car and handle $1,800 yourself?”
Impact of Electric Vehicles on Driver Retention
Industry analysts point to deeper structural issues undermining the taxi fleet initiative’s success. While many veteran drivers are shifting to the taxi sector due to higher recent unemployment, the influx is insufficient to cover the number of vacancies.
A key impediment, according to experts, is the integration of electric vehicles (EVs) into the fleets. Mr. Chow explained that the taxi business operates on the principle of “exchanging time for money.” The current lack of adequate EV charging infrastructure forces drivers to waste valuable time waiting to recharge, directly eroding their income—especially during profitable rush hours. This frustration is reportedly deterring many drivers from joining the fleets, particularly those requiring EV operation.
While the low base salary was widely condemned, some online commentators suggested the employment structure might appeal to specific demographics. They proposed the guaranteed income and labor protections could be suitable for retirees seeking stable work hours without the high financial pressures of independent cab rental. Furthermore, some noted that the income level might still allow a worker to qualify for public housing benefits, a rare opportunity for service sector employees working six days a week.
Next Steps for Service Modernization
For Hong Kong’s taxi fleet initiative to succeed, industry observers believe companies must fundamentally revise their compensation structures to be competitive with independent operators. Furthermore, both fleet operators and the government must urgently address the shortcomings in electric vehicle support infrastructure to mitigate time-loss risks for drivers who rely on efficient operations for their livelihood. Until these issues are resolved, the push for modernizing the city’s taxi services through structured fleets risks stalled progress.
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