Why Uber won’t be scared by the Hong Kong police sting

Following a sting operation and the arrest of five drivers, an Uber office in Hong Kong was raided by police today (Aug. 11), The Financial Times reported.

The taxi industry has been pushing back this summer, citing a 20 per cent drop in revenue after the introduction of mobile apps in Hong Kong.

Uber’s confidence in Hong Kong had grown, boosted by government aid amid rapid expansion – selecting the city as its regional headquarters for a push into mainland China.

In May, Chinese authorities carried out a raid at an Uber office in Beijing.

InvestHK previously said it provided Uber with “significant support, including information on public transport and advice on market entry strategy prior to its launch”.

Spokesman Harold Li added that Uber stood by its “driver-partners 100 percent” and welcomed the chance to work with authorities “towards updated regulations that put the safety and interests of riders and drivers first”.

Police didn’t name Uber Technologies, but officers were seen walking out of Uber’s Hong Kong office with computers and documents.

A senior inspector in Hong Kong said the drivers did not have the necessary hire vehicle permits or third party insurance.

Since launching in San Francisco five years ago, Uber has expanded to over 300 cities worldwide.

Uber, which has been valued at over $51 billion, is a comparative latecomer in China, where the number of mobile taxi-hailing app users is forecast to triple to 45 million by 2015 from 2013, according to Chinese research firm iResearch.

Black cab drivers in London have also shown their opposition to Uber with a “drive slow” protest, leading to gridlocked streets.

“Upon arriving at the destination, the officers paid with credit cards and then revealed their identities, arresting drivers aged between 28 to 65”, the statement said without confirming that the drivers were from Uber.