Due to “an evaluation of the marketplace”, Uber has hiked prices in the state by up to 80 percent.
After reviewing its business, the ride sharing company have introduced a booking fee and increased the minimum fare in the Asian financial hub.
“We are committed to continue our investment here in Hong Kong, to ensure a seamless Uber experience for both riders and driver-partners, and to provide a safe and reliable choice of transportation for Hong Kongers,” the company said in a statement.
Starting from August 21, fees for an Uber ride will start at HK$45 (US$5.75) for the UberX and UberASSIST. The more expensive UberBLACK, fares will start at HK$65 instead of the previous HK$50.
According to the company, the price hike will benefit the drivers, who take most of the fare home.
Uber has recently been the centre of controversy in Honk Kong. Authorities arrested 21 drivers for illegal car-hiring during a crackdown in May this year.
Lau Tat-fai, a chief inspector of police said: “I would like to stress that our law enforcement action is ongoing and we do not rule out further arrests,”
“We would like to say to the operator of the mobile phone application, as a responsible organization, you need to ensure cars for hire are equipped with a permit as required by Hong Kong laws. This is a basic responsibility to passengers and (shows) respect for Hong Kong laws,” he added.
Uber accused the state of failing to keep up with innovation and said they would help the drivers appeal.
Uber has also faced issues with authorities in Korea, Japan and Taiwan.
The car hailing app has appointed a new chief executive for the Asia Pacific. Brooks Entwistle will be responsible for Uber’s business development and corporate development and experiential marketing across the Asia Pacific.
“Uber is one of the most exciting, innovative and mission-driven companies in Asia, and I’m thrilled to be getting aboard as it steps up its efforts to unlock the benefits of ridesharing for riders, drivers and cities,” said Entwistle.