Uber seen as boost to competition despite local taxi concerns

While a taxi drivers’ association raised concerns about the government’s promotion of “online-booked taxis” impacting frontline workers, a member of the Transport Advisory Committee told The Times that ride-hailing platforms like Uber Taxi are not expected to disrupt the Macau market and may promote healthy competition.

After a nine-year absence, ride-hailing platform Uber has announced its return to Macau, launching “metered taxi” and “cross-border shuttle” services. In response, local authorities have reminded operators that providing taxi services within Macau and cross-border shuttle services between Macau and Hong Kong requires legal licensing, and that relevant platforms must collaborate with vehicles that hold the necessary licenses.

In a discussion with The Times, Cheong Sok Leng addressed the pressing need for online ride-hailing platforms in Macau’s transportation network.

She noted that the current fleet of 1,500 operational taxis struggles to meet peak tourist demand and adequately serve local residents’ daily transportation needs. Cheong said that Macau has long confronted challenges related to “difficulty in hailing taxis,” and with the steady recovery of its tourism industry and the ongoing increase in visitor numbers, “long lines of passengers waiting for taxis have become a common sight.”

Cheong further emphasized that the current taxi fleet is struggling not only to cope with the surge in demand during peak tourist seasons but also to meet the daily transportation needs of local residents.

“A significant service imbalance has emerged between residents’ basic mobility requirements and the concentrated demand for taxis during tourist periods,” she stated. Many residents have reported challenges in older neighborhoods, where geographical constraints and a lack of willingness from drivers to accept fares create difficulties.

While acknowledging that the introduction of online ride-hailing platforms “is indeed a positive initiative,” Cheong urged authorities to conduct careful assessments based on scientific data, plan market capacity judiciously, and ensure the healthy and sustainable development of related industries. “Macau needs more than just another ‘hailing interface’; it must genuinely address residents’ pain points of ‘difficulty in hailing taxis and unstable service,’” she added.

In reference to Uber’s re-entry into Macau, Cheong highlighted the mandatory taxi license requirement but disagreed with The Times’ claim that this significantly hampers Uber’s development. She noted that Uber’s strategy of collaborating with local taxi drivers and legitimate organizations “aligns precisely with this phased arrangement.”

The committee member acknowledged Macau authorities’ concerns about narrow roads and heavy traffic and warned that a rapid rollout of ride-hailing services could further strain the local transportation system.

She added that partnerships with local drivers enable Uber to leverage existing compliant resources, thereby reducing policy and operational risks and supporting the platform’s long-term success in Macau.

Cheong believes that Uber Taxi’s collaboration with Macau’s legitimate organizations and local taxi drivers “can create more ride opportunities for drivers.” While Macau’s market already includes platforms like Macau Radio Taxi hailing and Gaode ride-hailing, she argues that Uber Taxi’s entry could foster “healthy competition.”

Cheong recommends enhancing order-matching efficiency through technology to reduce empty-run rates and strengthening service support during nighttime and in remote areas.

She stressed the need for authorities to clearly define the legal responsibilities of platforms, drivers, and passengers in disputes over detours and service quality. For example, requiring platforms to integrate handling records with government regulatory systems could inform driver license ratings or penalties, creating an effective regulatory synergy to promote the industry’s healthy and orderly development.

Uber taxis are not real Ubers

Uber first entered the Macau market in 2015 but withdrew in 2017 after less than two years of operation, facing a cumulative fine of MOP10 million for operating without regulatory approval, involving over 300 drivers.

As the company makes its return to the region, António Monteiro, president of the Board of Directors for the Macanese Youth Association (AJM) and former member of the Central District Community Advisory Board, raised concerns, stating that “Uber-Taxis are not real Ubers” and highlighting the chaos on Macau’s streets as a reflection of the urgent need for comprehensive transportation infrastructure.

“It is merely a twist on or alternative to using registered or licensed vehicles, like taxis, just to say that we have ‘Uber’ because people have been calling for it. But in reality, they are not true Ubers; they are just regular taxis,” he pointed out.

Monteiro explained that this situation underscores a lack of encouragement for reforming Macau’s transportation system, claiming that the current monopoly supports taxis instead of fostering alternatives or competition.

“We have been discussing the need to legalize ride-hailing services for over a decade, similar to what we see around the world, yet what we have now is just ‘Uber with taxis’ – not what people have been asking for at all,” he stated.

He pointed to Hengqin and mainland China, where everything operates smoothly with a simple app and payment system. “No one argues about these things; it feels natural,” he added. In contrast, he expressed frustration that local discussions seem to resemble bargaining over prices at a street market. “Even in Hong Kong, the system works seamlessly and offers English support. Here, we have Uber, but it’s just a taxi service because Macau is ‘special.’”

In conclusion, he deemed the situation a “real farce and a waste of time” after years of public demand, noting that nothing has truly changed with the introduction of this new service. Yuki Lei & Renato Marques