Hong Kong's taxi industry has warned that around 10 percent of the city's cabs could be repossessed by banks as licence values fall and drivers shift to a new ride-hailing regime.
Industry leader Chau Kwok-keung said about 1,800 of the city's 18,163 cabs may soon face repossession after owners fail to meet mortgage payments. He spoke after authorities set a cap of 10,000 vehicles for ride-hailing permits on Tuesday.
Taxi licence values have dropped sharply from a peak of HK$7.66 million in 2009. As of May this year they stood at HK$2.62 million for urban red cabs and HK$1.45 million for green New Territories taxis, according to the Hong Kong Taxi Exchange.
Chau, chairman of the Hong Kong Taxi and Public Light Bus Association, noted that more drivers may now switch full time to ride-hailing services. The warning comes amid a long-running effort to create a regulatory framework for such operations.
