It’s one of many oddities about the world’s freest economy that taxi drivers here would be breaking the law if they offered discounts to passengers. However, if passengers ask for a discount, taxi drivers can agree – and of course everyone knows who to call to ask for a discount. Other taxi drivers are not happy about this, though.
Here’s a brilliant solution to this ‘problem’ (Cabbies do U-turn on long-trip discounts– subscription required):
A taxi drivers’ group has dropped its support for discounts on longer journeys – a move intended to help the trade combat illicit discounters – after government advisers said requesting a discount would not be made illegal.
Instead of charging slightly more for short journeys but a reduced rate for longer trips, as the Transport Advisory Committee (TAC) proposes, the Urban Taxi Drivers’ Association Joint Committee wants the flagfall – covering the first 2km – to go up by one-quarter to HK$20, and the charge for each 200 metres after that go up from HK$1.40 to HK$2, regardless of journey length.
So they want a big increase in fares so that they can then offer a discount? Yes, that seems to be their brilliant plan:
Mr Kwok said: “As the TAC said there would be no law against discounts, we think it is better to set the fare higher so there will be more room for negotiation with passengers.”
That’s right. They think they can increase fares by 40% and offer a 40% discount. Idiots.
Yesterday’s SCMP had more on the background to this story (Taxi operators unhappy with fares overhaul – subscription required):
Taxi Operators’ Association chairman Leung Shiu-cheong said 15 per cent of the city’s 30,000 drivers offered discounts of 20 to 40 per cent for longer journeys. Without a law against bargaining, the discounters would just be able to undercut the new fares, he said.
But [TAC chairwoman Teresa] Cheng said legislation was not workable.
“If a mere verbal inquiry could attract a criminal penalty, this would deter the public, including tourists, from using taxi services. No other cities in the world penalise passengers for this,” she said.
Shirley Lam, who uses taxis once or twice a month, said the new fare structure was more reasonable but she would still use discount gangs.
Discount gangs? Good grief – isn’t this just the free market in operation?



