Taxi trade fears 10% could lose cabs as drivers gear up for ride-hailing

Hong Kong’s taxi trade has warned that 10 per cent of the cab owners in the city could soon default on vehicle mortgages as licence values plunge, with many drivers switching to the new ride-hailing regime where 10,000 permits will be issued.The market value of a taxi licence has plunged over the past two decades, from a historic high of HK$7.66 million (US$970,163) in 2009 to HK$2.62 million for urban or red cabs and HK$1.45 million for green or New Territories taxis as of May this year, according to the Hong Kong Taxi Exchange.Licence values hit a record low of HK$1.99 million for red cabs and HK$1.25 million for green taxis in July last year, amid the government’s move towards introducing a regulatory regime for ride-hailing services.