Recent policy changes, an aging taxi fleet, and the slow integration of modern ride-hailing services have intensified calls from lawmakers and industry insiders for a comprehensive overhaul of the local taxi system.
Lawmaker Leong Sun Iok has emerged as a vocal advocate for reform, highlighting concerns raised by multiple taxi drivers who have contacted his office regarding recent operational adjustments by taxi operators.
According to multiple media reports, the most contentious adjustment involves extending the waiting time for pre-booked rides from 10 minutes to 30 minutes, coupled with requirements for drivers to travel longer distances to pick up passengers.
These changes have caused taxis to spend more time waiting without passengers, which directly increases the costs drivers have to cover.
Drivers say they face expenses like vehicle rental and fuel, and when passengers cancel rides, they lose money without compensation. As a result, many drivers report working longer hours under stressful conditions just to make ends meet.
Lei, a call taxi driver interviewed by Macao Daily News, shared how the new booking system has affected his livelihood. He explained that the extended waiting period now “locks” taxis into long-distance rides, often across different districts – unlike before, when trips were usually assigned within nearby areas (typically no more than 1.5 kilometers).
Now, for example, taxis based in the Macau Peninsula may receive bookings for far-off places like Coloane, he explained, requiring drivers to spend much more time and fuel traveling long distances – especially in the afternoon when fewer taxis are available.
Lei noted that this reduces the number of trips a driver can complete, cutting into income despite a special subsidy offered by the company.
He also pointed out that fuel costs for “call taxis” are 10% to 16% higher than for “regular taxis,” and that the current subsidies do not fully cover these extra expenses.
The call taxi driver warned that if conditions persist, many drivers may quit, worsening the shortage of taxis and making it harder for residents to secure rides.
Audit report reveals enforcement failures
The Commission of Audit’s (CA) recent report on special taxi services, covering operations from January 2023 to February 2025, exposed significant lapses in government oversight.
The report found that the Transport Bureau (DSAT) repeatedly failed to enforce key terms of concession contracts with the operator of Macau’s “blue” and “red” special taxis. These failures compromised public interests and frustrated users relying on these services.
The audit revealed that the concessionaire consistently failed to meet the minimum number of operating vehicles, particularly during peak hours.
Instead of imposing penalties, DSAT relaxed standards, first penalizing the operator and then ceasing penalties after loosening rules, the CA stated.
Additionally, reservation services fell short of contractual obligations. Passengers often did not receive timely ride information, and a successful booking did not guarantee a car.
The DSAT has since demanded rectifications, including dispatching booking details at least 30 minutes before pickup and removing geographic restrictions on ride assignments.
Lawmaker Leong stresses that the audit report’s findings highlight supervision and contract enforcement issues but do not address the broader systemic problems. Macau’s rapid growth in visitor numbers and border crossings has outpaced the expansion of taxi fleets and ride-hailing alternatives.
Leong urges the government to conduct a comprehensive review of taxi policies, adjusting fleet size and service models to better serve social needs while protecting drivers’ welfare.
Lawmaker Ron Lam concurs with this, emphasizing the urgency of addressing the impending expiration of blue taxi licenses and the need for a forward-looking transport policy that integrates technologies in tune with the market’s realities.
Rising demand,
shrinking fleet
According to Lam, Macau currently has 1,463 ordinary taxis and 300 special taxis (100 blue and 200 red). The 100 blue taxi licenses are set to expire on September 30, 2025, which will reduce the fleet size unless new licenses are issued.
So far, the government has approved 500 additional taxi licenses, but drivers remain uncertain about when these will be operational, fueling anxiety in the industry.
Traditionally, the local taxi sector has resisted ride-hailing services like Uber and Didi due to concerns over disruption and increased competition.
However, a new ride-hailing function has been introduced on the popular Chinese map app Gaode, allowing users to hail taxis much like Uber and Didi, but exclusively from participating local black taxis.
This service is conveniently accessible within the MPay and Gaode apps without requiring additional downloads or phone number changes, and supports payments via MPay, with mainland Chinese users able to pay through WeChat Pay or Alipay.
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