Sounds like Hong Kong taxi have similar system to NYC. It's a complete different economy here though compare to the US. It's quite expensive to keep a car here. The car itself isn't that expensive (unlike Singapore) but we get taxed to high heavens and the revenue gets piped back into public transport (inc taxi).
In effect, UberX drivers are barely making a profit because taxis are already so competitively priced. The only thing Uber had going for them is that their driver tends to have cleaner cars and UberBlack is filling the need in the premium market.
The Hong Kong government is actually responding and plan to develop premium taxi services, so it's good that tech innovation is driving (pun intended) real progress.
RE: Hailing for Change: Medallions vs. the Marketplace