A transportation expert from the University of Hong Kong has questioned whether the taxi industry's proposed fare hike will solve the industry's underlying problems.

"My main concern is whether or not with the fare increase the taxis will be able to deliver the service that they're supposed to," Timothy Hau told RTHK's Hong Kong Today programme, adding that Hongkongers had made it clear that they were not satisfied with the existing taxi service.

The authorities said on Monday that they were considering an application by the taxi trade for fare increases, including a HK$5 rise in the flagfall for urban taxis which would bring the starting charge to HK$32.

The trade wants the flagfall for other cabs to be set at HK$28, which would mean a HK$4.5 rise in the New Territories and HK$6 on Lantau. The industry is also calling for bigger incremental changes following the flagfall.

Hau said the industry had complained about the competition from Uber and other ride-hailing services.

The city had about 17,000 to 18,000 taxi medallions, but he said the new competition had eroded the value of the medallions from a high of HK$7 million to about HK$3 million.

"The thing, of course, is that the government has instituted a regulatory regime in which they [taxis] can apply for service provided that they have a medallion. But now with Uber and other ride-hailing services you don't have to have that."

He said ride-hailing services are technically breaking the law and not paying charges.

"Now of course with Uber and other ride-hailing services you don't have to have that [medallion]. They don't really pay a dime - and that's not right," Hau said.

He said the authorities were apparently turning a blind eye to these services because the existing taxi services were not up to par.