Hong Kong’s legislature has passed a bill that outlines a long-awaited framework to regulate ride-hailing services in the city under a licensing regime.
Speaking at the Legislative Council on Wednesday, Secretary for Transport and Logistics Mable Chan said in Cantonese that the bill would “modernise our [transport] services, attract younger drivers, and provide diverse traveling options for residents.”
Under the framework, ride-hailing platform operators would be required to obtain a licence, while drivers would also need to acquire a permit for themselves and for their vehicles in order to provide ride-hailing services.
The driver must be at least 21 years old, have held a driving licence for at least one year, and had no serious traffic convictions in the past five years to be eligible for a permit. They must also complete a course and pass a designated test.
Meanwhile, the ride-hailing vehicle must be no more than 12 years old – a limit that was relaxed after authorities said the previously proposed cap of seven years may affect the supply of ride-hailing services.
Drivers who obtained ride-hailing licenses for their vehicles must not allow others to use their cars to provide ride-hailing service, a measure that Chan said could prevent permits from being sublet or sold on the market.
Chan said the bill was expected to come into force earliest in October 2026.
After the bill becomes effective, operating an unlicensed ride-hailing platform will be punishable by a maximum fine of HK$1 million and up to one year behind bars.
Licensed platform operators also commit an offence if the vehicles and drivers they are associated with do not have valid permits. The offence is punishable by a HK$10,000 fine and up to six months in prison.
Lawmakers also approved an amendment to the bill that grants greater power to law enforcement regarding the seizure of vehicles, allowing police to better target drivers suspected of providing ride-hailing services.
The bill has come under intense pressure from the city’s taxi industry, which has long accused ride-hailing platforms of impacting cab drivers’ livelihoods.
Representatives of the taxi trade have urged authorities to limit the number of permits available for ride-hailing vehicles.
Chan said the government was still looking into permit quotas, and that this could be introduced in the form of subsidiary legislation in the future.
Ride-hailing services and taxi each have their own strength and could be “complementary” to one another, she said, adding that the government would continue its efforts to drive improvements in the taxi industry.
Measures such as requiring taxis to provide electronic payment options and install in-vehicle cameras will be implemented from next year, she added.
The bill was the final piece of legislation approved by the current LegCo term before it ends next week.
