Hong Kong’s Secretary for Transport and Logistics, Mable Chan, has announced plans to submit a comprehensive regulatory framework for ride-hailing services to the Legislative Council by the end of July. The move comes after nearly a decade of debates and controversies surrounding the regulation of ride-hailing platforms, which have become increasingly popular in the city.
Chan emphasized that the proposed framework aims to enhance public safety by regulating platforms, drivers, and vehicles. “Our goal is to ensure safer travel for the public,” she said. “Platforms will bear significant responsibility, including due diligence. For drivers and vehicles, we will draw on experiences from mainland China and overseas to ensure they meet specific conditions and standards.”
Key Features of the Proposed Framework
According to sources, the regulatory framework will include the following requirements:
Driver Licensing: Ride-hailing drivers will need to pass a written test, similar to the recently simplified test for taxi drivers.
Vehicle Standards: Vehicles used for ride-hailing must undergo regular inspections and carry third-party insurance.
Operating Licenses: A new type of operating license will be introduced for ride-hailing services, though the exact number of licenses has yet to be determined.
Uber’s Stance: Flexibility Over Caps
Uber, a major ride-hailing platform operating in Hong Kong for over a decade, has expressed support for regulation through licensing but urged the government to avoid imposing caps on the number of licenses. Judy Lee, Uber Hong Kong’s Head of Public Policy and Government Affairs, highlighted the potential impact of restrictions on the passenger experience. “Any cap on numbers would affect the travel experience, leading to longer wait times, higher fares, and reduced reliability,” she said. Lee pointed to flexible regulatory models in mainland China, Singapore, and Australia, which prioritize safety and healthy competition without limiting the number of drivers or vehicles.
Taxi Industry Calls for Data-Driven Decisions
The traditional taxi industry, represented by Ng Kwan-sing, Permanent President of the Taxi Drivers and Owners Association, has cautiously welcomed regulation but stressed the need for transparency and data to justify the number of licenses issued. “Regulation is better than none, as it fosters a fair and competitive environment,” Ng said. However, he expressed concerns about the current challenges facing the taxi industry, including a significant drop in business, over 400 idle taxis, and reduced demand due to competition and changing consumer habits, particularly in the nighttime economy. Ng urged the government to provide clear data and reasoning behind licensing decisions, stating, “We won’t accept vague numbers thrown out like bargaining at a market.”
Ng also called for clarity on the roles and distinctions between traditional taxis, taxi fleets, and ride-hailing services to ensure a balanced transport ecosystem.
Balancing Innovation and Fairness
As Hong Kong moves toward formalizing its ride-hailing regulations, the government faces the challenge of balancing innovation with the interests of the traditional taxi industry. The proposed framework aims to enhance safety and accountability while addressing the growing demand for ride-hailing services. With the submission to the Legislative Council expected within weeks, stakeholders await further details on how the government will shape the future of urban mobility in Hong Kong.