Tender for 500 new taxis concludes, driver training required

The Transport Bureau (DSAT) has published the results of the public tender for 10 new licenses that will allow the operation of 500 new taxis.

According to the tender results reviewed by the Times, the licenses cost an average of MOP3.65 million while the highest bid received was MOP3.8 million.

In total, the 10 new licenses, valid for eight years, will yield the government some MOP36.47 million.

With an average price of MOP3.65 million, each license owner will incur a cost of about MOP465,000 per year , which will be shared between up to 50 cars, resulting in a cost of some MOP9,300 per vehicle, per year.

Although each license allows the operation of that many vehicles it is as yet unclear how many new taxis will in reality be on the Macau roads because, as the Times has previously reported, about 300 taxi licenses are due to expire, according to DSAT.

Only up to 200 new taxis should be effectively available to the public.

The new licenses require license owners to accept payments via credit cards as well as the most common mobile payment applications (WeChat Pay, MPay, Alipay, etc.).

The new license contract also includes a requirement for license holders to provide training to the drivers including the learning of foreign languages.

This is designed to not only improve the image of a heavily criticized industry but is also related to the Macau’s goal of attracting more foreign visitors.

LICENSES WOULD NOT HAVE AN IMMEDIATE IMPACT

According to the rules, the winning bidders have up to 10 months, after receiving the notification of the winning bid, to begin the operating of the new taxis.

This will ultimately result in a slow introduction of the new taxis. It is unlikely people will notice a sudden increase in the number of vehicles available.

Officials from the taxi sector have said that since there is a plan for the retirement of about 180 vehicles at the end of the year, it is likely the new licenses and new vehicles will only fill the current shortage and not expand the offer for taxi services.

Official figures from DSAT have shown that at the end of 2023, the number of regular taxis (excluding the Radio Taxi service) operating in Macau was about 1,200, a number considered by many, including in the tourism industry, as insufficient.

In Macau, the regulatory framework forbids the operation of ride-hailing services (such as Uber, Grab, Lyft, and Didi, among others) that exist in most countries and even the neighboring regions.

UBER’S SHORT EXPERIENCE
In October 2015, the American multinational transportation company that provides ride-hailing services, courier services, food delivery, and freight transport – Uber – started operations in Macau, but only lasted for 639 days until July 2017.

The service, although immediately popular, was deemed illegal by the local government and led the authorities to an unprecedented “car hunt” for Uber drivers.

The company decided to close its doors in Macau after the accumulation of millions of patacas in fines and the prosecution of drivers.

Data from the company showed that, in just 600 days, Uber had partnered with around 400 drivers who recorded a driving distance of around 5.6 million kilometers.

The same stats showed passengers from 409 different cities used Uber in Macau during the period.