Hong Kong Taxis Use AI to Find Passengers by 2027

Finding passengers on busy Hong Kong streets is about to get a lot easier for taxi drivers, thanks to artificial intelligence that predicts exactly where people need rides.

A new system called StreetSights, developed by payment startup Dash and Hong Kong University of Science and Technology, will launch by mid-2027 to help traditional street-hailing taxis compete in the digital age. The AI model analyzes data from 2,000 taxis to forecast rider demand across 350 zones throughout the city, updating predictions every 15 minutes with up to 90% accuracy.

Unlike ride-hailing apps that control where drivers go, Hong Kong's 18,163 taxi drivers currently cruise streets without knowing where demand is highest. Professor Lo Hong-kam, the university's engineering dean, says this creates huge inefficiency that big data can solve by giving drivers the information edge they've been missing.

The technology works through special meters installed in taxis that track location, availability, and journey details every five seconds. Since February 2025, the system has recorded 6.5 million trips, teaching the AI to recognize patterns in when and where people need taxis.

The system gets smarter by factoring in weather conditions and major events that affect travel patterns. Drivers can see hotspots on their devices and decide whether heading to high-demand areas is worth the time and fuel costs.

The Ripple Effect

Early simulations using "ghost agents" show impressive results: drivers completed 31.2% more trips and earned an extra 15.8% in daily fares. For taxi drivers facing new competition from ride-hailing services launching in August, this technology offers a way to level the playing field using their own strengths.

The innovation arrives at a crucial moment for Hong Kong's taxi industry, which must adapt to changing transportation habits. Chau Kwok-keung, chairman of the Hong Kong Taxi and Public Light Bus Association, acknowledges the system will help drivers, though its full impact won't be clear until it's widely adopted.

The developers plan a six-month live test starting in October 2024 before the official rollout. The prediction model will integrate into Dash's existing payment system, which already accepts everything from Octopus cards to Apple Pay, making adoption seamless for drivers already using the platform.

The challenge now is getting enough drivers to use the system, given the taxi industry's fragmented nature and loyalty to different service providers. Success may require government support to promote adoption across all taxi fleets, ensuring no driver gets left behind in the digital transformation.

Smart technology is giving Hong Kong's iconic red taxis a fighting chance in the app-driven future of urban transportation.