Hong Kong Approves Bill Regulating Ride-Hailing Services

Hong Kong, Oct 15 (AP)— In a significant regulatory shift, Hong Kong lawmakers approved a bill on Wednesday to oversee online ride-hailing services like Uber. This regulation mandates that platforms, vehicles, and drivers obtain licenses, following persistent objections from the local taxi industry.

The inaugural set of licensed platforms is anticipated to commence operations by late 2026, at the earliest, according to officials.

The city's transport commissioner will assess companies seeking licenses based on their experience, financial strength, and planned regional investments. Licensed entities must sustain “proper and efficient” services, ensuring their vehicles and drivers hold the necessary permits, as stipulated by the new legislation.

Drivers must meet several criteria: they must be at least 21 years old, possess a private car driving license for a minimum of one year, and have no significant traffic violations in the past five years. They are also required to pass a test and complete a pre-service training course.

This legislation represents a pivotal development for ride-hailing services in Hong Kong, where, to date, private vehicle drivers have been prohibited from offering paid rides without a permit.

Uber Hong Kong hailed the vote as a milestone, marking progress toward integrating ridesharing within the city’s transport framework and providing clear regulations for both riders and drivers.

In recent years, police have arrested several Uber drivers for allegedly operating without permits, with over two dozen drivers fined in 2018.

Opposition from taxi companies has been longstanding, as they view platforms like Uber as competitive threats.

Since launching in Hong Kong in 2014, Uber has faced numerous legal and regulatory hurdles as part of its international expansion but continues to enjoy popularity amid local dissatisfaction with taxi services.

The new rules propose a cap on vehicles permitted for ride-hailing, details of which will be outlined in subsequent legislation next year. If passed, license applications will open thereafter.

Uber Hong Kong expressed eagerness for “constructive discussions” on the proposed vehicle quota system.

Under this bill, operating a ride-hailing platform without a license could result in fines up to 1 million Hong Kong dollars (approximately USD 128,600) and a maximum one-year imprisonment.

Furthermore, platforms facilitating rides without proper permits could receive up to six months in jail and 10,000 Hong Kong dollars (around USD 1,286) per initial violation. Penalties would escalate for repeated offenses with longer prison terms and heavier fines. (AP) RD RD

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