return sparks industry concerns over legal compliance and operations

Banned in Macau since mid 2017 to protect the licensed taxi industry, Uber has announced its return to the local market, offering “metered taxi” services.

While local authorities acknowledged the return of this ride-hailing platform, the taxi industry criticized the lack of communication during policy formulation.

The ride-hailing app Uber first launched in Macau in late October 2015 but faced relentless crackdowns from local law enforcement. In an open letter, 10 months after its debut, Mike Brown, then Uber’s Asia general manager, revealed that 300 drivers had incurred fines totaling MOP10 million during the company’s brief operation. Furthermore, the then-general manager for Macau and several supporters submitted thousands of letters to the Office of the Secretary for Transport and Public Works, detailing the experiences of local residents and tourists using Uber services.

At the time, Macau regulations required a permit from Macau authorities to operate light passenger transport services, making government authorization a prerequisite. After just 600 days of service, Uber suspended its local operations in 2017 due to regulatory disagreements.

However, nine years later, following rumors on mainland social media about Uber’s potential return, including driver recruitment ads, the company officially re-entered the local market yesterday. It launched a premium sedan option for cross-border shuttle services between Macau and Hong Kong, alongside basic city ride-hailing functionality.

The company issued a statement to local media yesterday announcing plans to recruit drivers to ensure sufficient operational capacity during the initial service launch phase. It emphasized that this return to Macau follows actions by local regulators after a study of ride-hailing services, aimed at addressing the growing taxi shortage amid the tourism recovery. The statement noted that from now until February 28 this year, newly registered drivers will receive a MOP 500 incentive upon completing their first trip.

Reportedly, the company sold its China operations to DIDI Global (DIDIY) in 2016. Choosing Macau as the entry point for its Greater China region return reflects management’s strike of a new balance between regulatory compliance and market demand, while demonstrating to investors its execution capability in expanding into global tourism hotspots.

HK-Macau rides

According to Uber’s statement, the “Hong Kong-Macau Cross-Border Shuttle” service is a collaboration with Kwoon Chung Bus Holdings, allowing users to enter pickup and drop-off locations in the Uber app.

The system offers a fixed upfront price based on the area, with toll fees included to ensure predictable expenses. Trips can be booked up to 90 days in advance, but must be reserved at least 24 hours prior to departure.

A Times simulation of a trip between Taipa and Central Hong Kong showed a fare of around MOP3,600. In its return to Macau, Uber is offering a 40% discount for the first trip of this kind.

As the company stated, “Getting around between the two cities using the Uber app with your familiar booking and e-payment methods. No need to leave the vehicle even when crossing borders,” although the seamless border crossing is “only applicable to riders who are Chinese citizens, or holders of the ‘Mainland Travel Permit for Hong Kong and Macau Residents’ (commonly known as the “Home Visit Permit”).”

Local rides

For local travel in Macau, Uber now includes a “metered taxi” option, enabling visitors to directly book licensed Macau taxis through the app. Fares are calculated using official meters, alleviating concerns about currency exchange or the need for exact cash.

The interface supports multiple languages, significantly reducing communication barriers between tourists and drivers. This Uber Taxi service differs from previous offerings in that drivers must hold a valid taxi driver’s license, fares are subject to government-regulated pricing, meters are used, and receipts are provided.

In response to Uber’s announcement of its return to the Macau market as a taxi service, the Transport Bureau and the Public Security Police Force stated they have “noticed” the recent introduction of “Hong Kong-Macau cross-border dedicated vehicles” and Macau “metered taxi” services by the relevant platform company.

They recalled the platform’s prior record on collaborating with legally operating vehicles and emphasized that cross-border taxi operations between Hong Kong and Macau must comply with the city’s regulations.

While urging the public to verify whether ride-hailing vehicles display legal identification, the authorities noted that cross-border taxis must also bear distinctive identification marks on both the front windshield and rear of the vehicle to facilitate passenger recognition.

The same authorities emphasized that the government is actively advancing legislative amendments to regulate ride-hailing service platforms, with plans to introduce standardized management to better safeguard the rights of both passengers and drivers.

In the statement, they specifically reminded taxi operators that they must comply with relevant legal frameworks, including the requirement to use vehicles with valid licenses and drivers holding valid taxi driver certificates. Additionally, taxi operators who charge above the statutory fare or fail to fulfill a booking after accepting it may violate legal provisions against overcharging or refusing passengers.

Uber’s return to Macau is backed by more than speculation as Secretary for Transport and Public Works, Raymond Tam, announced earlier this year that the government was actively exploring the establishment of an online ride-hailing service and a regulatory platform.

As he noted, this initiative aims to protect the rights of both passengers and drivers through a standardized management system. 

Hiring a taxi yesterday around 3pm, on Uber app

According to a previous response to lawmakers’ inquiries, the government intends to adopt a “gradual and step-by-step” strategy, beginning with a phone-based booking system before expanding to comprehensive ride-hailing services once the system is fully operational.

Authorities also stated that, to facilitate this transition, the city’s Taxi Service Law will be amended this year, paving the way for ride-hailing platforms while ensuring that any actions taken do not inadvertently cause more harm than good.

Shortly after rumors that Uber was recruiting drivers in Macau surfaced, the Times sought confirmation from Tony Kuok, president of the Macau Taxi Drivers Mutual Help Association, about the company’s driver recruitment campaign.

Kuok acknowledged that while the incentives for new driver registrations appear attractive, the operational model requires thorough examination to ensure legal compliance.

He also expressed concern that current recruitment methods may involve illegal practices, particularly if conducted without approval from relevant authorities, which could result in drivers operating “unlicensed vehicles.”

In a discussion with The Times earlier this week, Kuok also criticized the insufficient engagement with the industry during policy formation. He emphasized that prioritizing the taxi industry’s voices and opinions is crucial to ensure services operate within a compliant framework while protecting the rights of both drivers and passengers.