With the introduction of five new licensed fleets beginning operations within a year, passengers can finally look forward to better taxi rides – albeit potentially at higher prices.

This is a long overdue measure to improve the sometimes poor service in the industry. However, authorities must also speed up the review of the regulation of ride-sharing companies.

Similar to Uber and other platforms, passengers can choose between regular taxis, premium and wheelchair-accessible vehicles via online apps.

Licensees will be permitted to charge a booking fee in addition to the metered fare or to agree a flat rate with passengers before the journey begins, to be paid online or via e-payment devices in the vehicle.

Companies will be required to provide training for drivers and set up their own customer service and complaint channels.

To increase safety, safety devices such as GPS, dashboard cameras and driver monitoring systems are installed in the cabs.

The fact that the reform process has taken so long speaks volumes about the problems facing the industry and the government’s inertia, despite progress made by pioneering Uber and other online ride-hailing companies.

It is encouraging to hear that some companies have committed to making significant investments in their fleet, even though the fees involved may be 10 to 25 percent higher than the rates charged by the taximeter.

Only time will tell whether the new taxi fleets will deliver what they promise. Although the government initiative no longer carries the “premium” label, public expectations for better services have increased.

We hope that competition will lead to service improvements across the industry.

This is particularly important because the taxi industry is to be divided into two classes. The new fleet of around 3,500 vehicles will account for 20 percent of existing taxis in Hong Kong.

Since there will also be a more expensive premium class for online booking in the future, passengers definitely do not want to feel inferior when they hail a regular taxi on the street and are only offered poor service.

The Transport and Logistics Bureau said the city recorded 4,585 taxi accidents last year, up 26 percent from the 3,632 in 2022 and more than the 4,153 in 2021.

Separately, the Department of Transport received 1,006 serious complaints about taxi drivers last year, almost double the 574 in 2022 and significantly more than the 464 in 2021.

The overall safety and quality of service in the industry remains a cause for concern.

Authorities must speed up review to regulate popular but unlicensed ride-sharing services.

This will help bring Hong Kong on par with other cities around the world where passengers have a wider choice of transport options and greater convenience thanks to technological advances.