Hong Kong passes law to regulate online ride-hailing platforms
Cars travel down a road near a construction site, in West Kowloon, Hong Kong, Jul 2, 2015. (File photo: REUTERS/Bobby Yip)
HONG KONG: Hong Kong lawmakers passed a law on Wednesday (Oct 15) to regulate online ride-hailing services, aiming to resolve years of tension between licensed drivers and digital platforms.
The legislation introduces a formal framework for ride-hailing operators in the financial hub, including United States-based Uber, which launched services in Hong Kong in 2014.
Uber has said it brought investment and job opportunities to Hong Kong, but has faced criticism from local taxi drivers who argue the platform has undercut their earnings and operated with an unfair advantage.
Hong Kong police raided Uber's local office in 2015 and arrested several drivers for allegedly carrying passengers without proper licences.
The city lacked a regulatory structure to address the matter for years.
However, chief executive John Lee said in July the problem could no longer be "put off", and that traditional taxis and online ride-hailing vehicles could "co-exist".
Under the new rules, eligible ride-hailing drivers must be at least 21 years old, have held a private car licence for at least one year, and have no serious traffic convictions within the previous five years.
Platforms, vehicles and drivers will all be required to obtain licences, and drivers must pass a designated test.
Hong Kong's transport commissioner will determine the number of ride-hailing permits to be issued, according to the legislation.
Uber said in July it was concerned about proposed caps on vehicle numbers, warning that artificial limits could reduce drivers' earnings and increase wait times.
It said in a statement on Wednesday that the legislation was a "significant milestone" for Hong Kong's transport system, adding that it looked forward to discussing its implementation, particularly vehicle quotas.
Operating a ride-hailing service without a permit could result in imprisonment and fines, according to the new legislation.
Secretary for Transport and Logistics Mable Chan said licensed ride-hailing platforms were expected to begin operating in the fourth quarter of 2026.
