Hong Kong Taxi Trade Fears 10% Could Lose Cabs Amid Ride-Hailing Shift

Hong Kong's taxi trade warns that 10% of cab owners could default on mortgages as licence values plunge and drivers switch to a new ride-hailing regime, impacting the city's transport sector.

Sat May 30 2026

Taxi Licence Values Plummet and Industry Concerns

Hong Kong's taxi trade has warned that 10% of cab owners in the city could soon default on vehicle mortgages. This fear arises as licence values plunge and many drivers consider switching to the new ride-hailing regime. The market value of a taxi licence has significantly decreased over the past two decades. From a historic high of HK$7.66 million in 2009, urban (red) cab licences now stand at HK$2.62 million, and New Territories (green) taxi licences at HK$1.45 million as of May this year.

Impact of New Ride-Hailing Regime

The introduction of a new ride-hailing regime by the Hong Kong government is prompting many drivers to consider transitioning to this new system. The government plans to issue 10,000 permits under this scheme. This shift is expected to have a substantial impact on the existing taxi licence market, raising concerns that many current drivers may face significant financial difficulties if they fail to adapt to these changes.

*Source: SCMP (2026-05-30)*

Tags: #Hong Kong #Taxi #Ride-hailing #Economy #Transport