The Transport Department on Monday issued a five-year licence to SynCab, signalling the start of Hong Kong's revamped taxi fleet system.

SynCab is one of five companies set to operate fleets of up to 1,000 cabs by the end of this month as part of an effort to enhance service quality and reform the trade.

To get on a SynCab taxi, passengers can book a ride through the app at a higher fare or hail one down on the street and be charged by the meter, just like other cabs.

Fleet taxis will also display a specially designed plate on both the front and rear of vehicles, along with a fleet certificate on the windshield for identification.

The company said it would start with 160 taxis, short of the 425 taxis it had promised to operate when applying for the licence.

“One of our key objectives or key goals at SynCab is how to promote drivers' working quality as well as the efficiency for passengers to hail through the app,” founder and executive director Sonia Cheng said after a ceremony celebrating the fleet’s launch.

“We would like to have both demand and supply grow together. That's our main goal.

"And while doing that, we'll keep the quality of the service.”

She added it would take around 15 minutes for people to get a taxi through its app during non-peak times.

A taxi driver, Daniel, who has been part of SynCab for more than a decade, expressed hope that the grant of a fleet licence can help raise the industry’s image.

He said the fleet system offers more training and support.

At the same ceremony, Secretary for Transport and Logistics Mable Chan described the issuance of fleet licences as a pioneering step that leads the industry towards quality development.

She said she believes the company will demonstrate proper management of taxi fleets and effective use of technology and that more drivers will want to join a fleet moving forward.

Chan also said that within one or two weeks, the government will submit subsidiary legislation to the Legislative Council mandating the installation of car cameras, GPS and electronic payment devices in all taxis.