Crackdown on Uber continues in both SARs

Two Hong Kong Uber drivers who were among those arrested in a police raid in August were fined last week, after having pleaded guilty to charges of driving without proper licenses and third party insurance.
The two drivers, Lam Man Lok (37) and Kwan Pui Chi (65), both admitted to the charges with the latter saying he would bear responsibility for his crime. They were fined HKD7,000 each, and had their driving licenses revoked for 12 months.
Both drivers were arrested as part of an undercover police operation in August that involved a raid of Uber’s Hong Kong office in Cheung Sha Wan. This led to the subsequent arrest of seven drivers and several staff members, and the confiscation of computers and documents.
All seven drivers arrested in Hong Kong were charged with “driving a motor vehicle for the carriage of passenger for hire or reward” without a proper license, and for driving without appropriate insurance. The other five have not entered pleas yet, and have had their cases adjourned until February 24.
Harold Li, a public relations representative for Uber, North Asia, said in a statement that all Uber drivers are covered by insurance, but drivers also need their own additional third party coverage. “We understand that the majority of the drivers intend to contest the charges in the months to come, and Uber will continue to provide needed support,” Li wrote.
Previously in Hong Kong, taxi drivers damaged their own taxis with hammers and drove slowly towards the government headquarters protesting the app-based service. They are calling on authorities to enforce the law and prevent unlicensed drivers from operating.
Taxi drivers in the neighboring region have made claims that they have observed a 20 percent drop in business due to the rise of unlicensed alternatives, and have demanded that the government introduce new regulations to cover the fledgling alternative industry. Meanwhile, taxi associations are now adapting to the market entry requirements of app-based hailing services. They say that they are planning to introduce an official taxi-hailing app, similar to the Uber platform. Staff reporter

Chinese rival lines up bank to help drivers buy cars

Didi Kuaidi, the ride-hailing service slugging it out in China with Uber Technologies Inc., is partnering with China Merchants Bank Co. to provide automobile financing and help its 14 million drivers with car payments.
Merchants Bank, which is making a strategic investment in Didi, will provide loans and payment plans to qualified drivers. The pair are also working together on bank cards and in-app credit card payments, Didi President Jean Liu told reporters at a press conference yesterday.
Didi, which has so far expanded into 400 cities in China and attracted 250 million users, plans to roll out credit and debit cards with the lender in the second quarter that offer discounts and benefits to riders. Competition in the nascent ride-
hailing arena is heating up with Uber announcing yesterday it will expand into 18 more cities across three provinces, taking its total coverage to 55 cities by the end of February.
Our drivers “at some time, they all need to replace their cars or buy a new one, so this plan will enable these drivers to get a car in a more economical way,” Liu said. “From the CMB perspective, they love this business because they worry about risk control and they want very steady revenue income. The profile should be very safe for them and our drivers fit this criteria.” Bloomberg

macau authorities deem service illegal

Following the launch of the application last October, the local police issued fines to a large number of Uber cars. Authorities repeatedly said that the application is illegal in Macau, since a vehicle must be duly registered as a taxi before a driver can offer someone a ride in exchange for the payment of a fee.