The Hong Kong government will invite ride-hailing platforms to apply for service licenses next month, with the first approvals expected by late November. This regulatory shift follows the completion of legislative procedures for four subsidiary laws, aiming to establish a framework for ride-hailing while maintaining a focus on taxi service integration.
Transport Department Licensing Schedule and Permit Caps
Licensing Timeline and Regulatory Framework
Following the Legislative Council’s completion of the “taking note” motions for the four subsidiary laws, the Transport Department will launch a dedicated website tomorrow to assist drivers, platforms, and the public in navigating the new application requirements. The government plans to launch a combined written test for both taxi and ride-hailing drivers, allowing prospective drivers to prepare for vehicle and driver permit applications in the fourth quarter of this year. If the process proceeds as planned, the first platform licenses are expected to be issued starting from late November, with the full legal provisions for platform regulation taking effect on August 22 next year.
The government has set an initial ceiling of 10,000 ride-hailing vehicle permits. Secretary Linn emphasized that this cap is not “set in stone” and that the government will conduct dynamic assessments based on operational data. The Transport Department will conduct a “baseline survey” in the third quarter of this year to understand current service usage. Once licensed, platforms will be required to submit operational data, including driver online hours, the number of active drivers, and passenger waiting times, to the Transport Department to assist in future policy adjustments.
For more on this story, see Hong Kong’s New Dog-Friendly Restaurant Scheme: First Month Implementation and Impact.
Legislative Council Proposals for Fare Adjustments and Driver Demerit Systems
Legislative Debates and Industry Proposals
The legislative process sparked significant discussion regarding the competitive balance between the existing taxis and the new ride-hailing sector. Legislative Council member Chan Chung-yee suggested allowing taxis to adjust standard fares by one to two percent during off-peak hours to avoid being “handcuffed” in competition. Chan also recommended that the government cap platform commissions at 20% and mandate that platforms disclose fare breakdowns to prevent hidden fees like advertising or ranking costs.
Other lawmakers raised concerns about safety and supervision. Lawmaker Leung Chun proposed a points-based system for ride-hailing drivers, similar to the existing taxi driver demerit system, arguing that relying on individual platform ratings is insufficient. Leung also suggested that the first phase of licensing should be limited to a maximum of three platforms to prevent market fragmentation. Meanwhile, lawmaker Lam Wai-keung argued that the current policy should prioritize taxis as the primary transport mode, with ride-hailing as a supplementary service. He expressed concerns regarding the “window period” before 2027, fearing it could allow platforms to utilize unlicensed drivers.
This follows our earlier report, Hong Kong Weather: Yellow Rainstorm and Thunderstorm Warnings Issued Amid Heavy Rain.
Legislative Council member Lam Wai-tsuen proposed an “emergency replacement permit” mechanism, suggesting that if a ride-hailing vehicle is out of service for repairs, drivers should be allowed to use a compliant private car for 14 days upon submitting proof of maintenance or police reports. Additionally, lawmaker Junius Ho Kwan-yiu suggested an unconventional approach to address taxi industry labor shortages: retraining 5,000 postal workers to become “postal taxi drivers” to help alleviate the Post Office’s three-year deficit.
Secretary Linn’s Smart Monitoring System for Platform Data Integration
Technology and Enforcement Requirements
The government’s strategy relies on a “smart monitoring system” designed to integrate with platform technology. Secretary Linn stressed that regulation cannot rely solely on street enforcement. The Transport Department plans to establish an information management system that connects directly with platform systems to receive operational data. Under licensing conditions, platforms will be required to perform due diligence on driver identities and incorporate features such as ride-sharing and “one-touch support” to enhance passenger safety.
Private Car Insurance Requirements for Ride-Hailing Drivers
Regarding insurance, the government currently favors a model where ride-hailing drivers purchase their own insurance, such as extending existing private car policies to cover commercial ride-hailing services. Secretary Linn reiterated that the taxi and ride-hailing sectors are not a “zero-sum game” and can coexist, with the government continuing to strictly crack down on illegal “white-plate” vehicles.
Find more reporting in our News section.
Keep reading