The Hong Kong government has proposed capping the number of e-hailing cars allowed in the city, though the regulatory framework proposal gives no details of the specific limit.
The Transport and Logistics Bureau on Tuesday unveiled its proposal to regulate online ride-hailing services, after Chief Executive John Lee said the government must not delay tackling issues stemming from such services.
According to the proposal submitted to the Legislative Council’s Panel on Transport, the government suggests issuing licences to ride-hailing platforms that would be valid for five years and renewable based on the platform’s service performance.
The company operating the platform must be locally registered and have offices and staff based in the city. The government proposes that each platform meet a set of criteria, including operational experience, capital investment, and proof of financial capability.
Companies would be required to pay an application fee and an annual licence fee. The government also proposed additional charges for each e-hailing ride, with the revenue used to support the taxi industry in improving service quality.
The government estimated that “a few” online ride-hailing companies would meet the application criteria.
In addition to the platform licence, each vehicle and driver would be required to obtain separate licences to provide ride-hailing services.
The vehicle permit would be valid for one year, on the condition that the car is no more than seven years old. The vehicle must also pass an annual inspection, and the permit holder must purchase third-party liability insurance.
The government believes there is a need to impose a limit on the total number of vehicles providing online ride-hailing services.
The proposal does not specify the cap. However, authorities said a supplementary legal amendment would be submitted in the first half of 2026 to outline the arrangement.
“When making decisions, we will take into account and balance multiple factors, including passengers’ travel demand and experience, the capacity of the road network, the ecosystem of the public transport system, and the overall health and sustainable development of the personalised point-to-point transport services sector,” read the government’s proposal, which is only available in Chinese.
‘Improve competitiveness’
Under the proposed framework, platforms would be allowed to set their own prices, but passengers must be informed of the fare arrangement prior to the ride. Drivers – who must be at least 21 years old and have held a private car licence for at least one year – may register with and accept orders from multiple platforms.
The government proposed allowing ride-hailing platforms to include taxi-hailing services, saying this could “improve the competitiveness” of taxi drivers and provide more options for passengers.
Taxi licence holders would not be required to obtain a separate permit to offer ride-hailing services, the government suggests.
The proposed framework is set to be discussed at the Panel on Transport meeting on Friday.
Ride-hailing apps currently operate in a grey area in the city, which requires vehicles offering hailing services to have a hire car permit. Private vehicle owners who sign up with online platforms to provide hailing services without a permit could be punished by up to six months in jail and a HK$10,000 fine for the first offence.
Ride-hailing services such as Uber have seen rising popularity amid long-standing dissatisfaction with taxi service standards.
Last month, Uber, which has operated in Hong Kong since 2014, revealed that it had more than 30,000 drivers in Hong Kong in the past year.
Andrew Byrne, the company’s global head of public policy, warned that a cap on the number of drivers and vehicles allowed on the platform could result in longer wait times and higher prices, while limiting ways for people in Hong Kong to earn an income.
