Our Desk | Why Uber is part of the answer, not the problem

When I first visited Macau in September 2014, I was shocked to see taxis regularly ignoring the hailing of my local acquaintances.  What shocked me even more was the discovery that the situation had actually been “improving”!
That is to say nothing about my first experience of riding in a taxi in Macau, in which I paid about MOP200 for a ten-minute ride from downtown to the Macao Cultural Centre.
Since then, however, I have come to accept the normality of taxis cruising around the Macau peninsula, seeking out “certain clientele,” and ultimately failing to provide their licensed service to the ordinary residents of the MSAR.
This can be frustrating during the day when you need to get somewhere quickly. In the late hours, it becomes a nightmare. I have heard anecdotes from my friends in Macau as they have recalled instances of “being stranded” at the airport, or leaving an establishment in the rougher, northern district, only to have taxi after taxi refuse to pull over.
So I was delighted, when in October, I discovered that Uber were commencing operations in Macau. These services, however, were sadly short-­lived. Within days, the government came down like a ton of bricks, declaring the service illegal and subsequently prompting drivers to retreat to the shadows.
The truth of the matter is, if the government were to allow Uber to operate in Macau, it would probably be the most immediate and direct way for authorities to have a meaningful impact on the lives of ordinary people.
Those in Macau who have desperately tried to hail taxis when they have needed to reach places urgently and efficiently will understand what I mean by this. Those who have waited at bus stops to watch bus after bus, packed with commuters, refuse to allow passengers to board, will understand this.
Those who have to negotiate excessive on-call “premiums” that often exceed MOP100 – because the taxis rarely pull over seeking your business – they will understand what I mean by this.
And those who have resorted to buying their own car or motorbike, despite the recent tax hikes and the government’s efforts to reduce motor traffic in the city, will also know what I mean by this.
Uber has faced significant resistance worldwide because, in most places, the presence of the app-­based service threatens an existing market for incumbent taxi services.
However, in Macau, there is very little difference in terms of price between an Uber taxi and a regular one. Customers choose Uber because they know Uber will stop for them. That alone makes it a reliable service.
And given the length of the taxi queue outside the Grand Lisboa – and at other casino resorts, for that matter – in the late afternoon and early evening, can incumbent taxi companies really argue that the introduction of say, 100 Uber cars, will really affect their business?
The introduction of Uber services in Macau may seem especially negligible, since the Transport Bureau (DSAT) is poised to issue a license to Lai Ou Taxi Service for 100 “special taxis”. At least we can assume the bureau is poised to award the tender to Lai Ou, since they are thus far the only company whose bid has been accepted by DSAT.
Or will the presence of just three Uber cars – the number of cars currently operating – affect the taxi companies and their drivers? If it does indeed affect their business, then that is all the more reason to permit the operation of Uber.
Imagine a world where taxi drivers compete for business like every other private sector institution –
by providing a service for an agreeable price at an appropriate quality. Imagine a  world where they seek out customers, instead of refusing them.
In fact, the legalization of Uber services could prompt a win-win situation for everybody involved.

Daniel Beitler