How many ride-hailing permits should Hong Kong allow? It depends on who you ask

Hong Kong taxi industry leaders and Uber have both voiced concerns over a looming quota for ride-hailing vehicles, despite transport authorities promising to consult stakeholders before settling on a figure. The concerns were raised in response to the Transport and Logistics Bureau’s submission to lawmakers on Monday regarding regulatory details, which cited suggestions that between 10,000 and 15,000 permits should be issued. Transport minister Mable Chan told lawmakers a day later that the administration had yet to express a preference for a specific figure. The government earlier pledged to include a quota limit in the final gazetted document, pending lawmakers’ approval before their summer recess in mid-July. The proposed ride-hailing regime aims to rectify a regulatory vacuum in which platforms such as Uber, Tada, Amap and Didi Chuxing currently operate – a situation decried by cabbies as unfair. Amap is operated by Alibaba Group Holding, which also owns the South China Morning Post. Three major taxi groups told the SCMP that the quota would have far-reaching effects on the market. “[Ride-hailing service providers] are supposed to help us serve the people better, not replace us,” Hong Kong Taxi and Public Light Bus Association chairman Tran Chau said. Ahead of the bureau’s submission, lawmakers and experts floated various numbers for the cap. Legislator Mark Chong Ho-fung argued that a minimum of 10,000 ride-hailing vehicles, when combined with the existing 18,000 taxis, would effectively absorb illegal operators and establish an ideal market balance. He said he believed that the government intended to go in this direction. Smart Transportation Alliance director Gary Zhang Xinyu, who is also a former lawmaker, suggested a higher quota of 20,500, based on government statistics showing ride-hailing services handle about 190,000 passenger trips daily – equivalent to roughly 119,000 journeys assuming an average of 1.6 passengers per ride. These journeys accounted for about 22 per cent of the city’s daily total, with the rest covered by taxis. Hong Kong has 46,000 active cabbies on the road with 18,000 taxis. Uber Hong Kong, which has operated in the market for more than a decade, said it was “deeply concerned” by the possibility of a 10,000 to 15,000-permit limit, arguing it would “fall far short” of serving current demand. The company warned that such restrictions would drastically reduce service access for both residents and tourists. Association chairman Tran said: “I hope the government will not take [the 10,000-permit proposal] seriously. Traditionally, taxis are the main providers of point-to-point transport services, while the role of ride-hailing should be supplementary.” Hong Kong Taxi Owners’ Association chairman Wong Po-keung raised concerns over worsened traffic congestion if 10,000 or more permits were issued. “I am speechless. That is an incredibly silly idea, and I hope the government will not listen to those people,” he said. “Hong Kong’s traffic will be jammed everywhere if there are too many ride-hailing cars running on the roads during rush hours.” Ng Kwan-sing, honorary chairman of the Taxi Dealers and Owners Association, suggested that the government should initially issue a small number of licences to test the waters. “It can gradually increase the number of permits if necessary so that the taxi sector can adjust to the new competition and find ways to stay afloat,” Ng said. “If an extra 10,000 ride-hailing cars suddenly enter the market to compete, it could cause a sharp drop in income, forcing some taxi drivers to change jobs. “It is not good for the development of the taxi sector.” Ng argued that the city’s new premium taxi fleets, which can be booked through apps, could serve as alternatives to ride-hailing services. Authorities launched the premium fleets last year in a bid to improve service quality, but only 1,500 of the vehicles were operating as of April. While the figure was short of the goal of 3,500, the fleets have already gained significant traction, recording 2.2 million bookings as of February. Quentin Cheng Hin-kei, spokesman for commuter concern group Public Transport Research Team, noted that the ride-hailing industry offered drivers flexibility, allowing them to decide when to earn and how much. “By shifting towards a formal licensing system similar to traditional taxi-hailing companies, the government risks destroying the flexibility that defines the gig economy,” he said. Cheng instead advocated for a system that would require platforms to register with the government while maintaining market elasticity. “I am not saying there should be no regulation,” he said. “But it should be a moderate level of oversight that maintains market vitality.” As long as vehicles met basic safety standards, such as age limits and being bound to specific drivers, the government should avoid imposing caps on the number of cars allowed to serve the public, Cheng said. “By allowing the market to dictate supply, I believe that Hong Kong can avoid the grey area for ride-hailing services to operate and finally establish a system that truly reflects actual market demand,” he said. Lawmakers are scheduled to discuss the proposed details of the regulatory regime on Tuesday afternoon.

How many ride-hailing permits should Hong Kong allow? It depends on who you ask

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Both taxi industry leaders and Uber sound alarm over government’s latest step towards regulating service, even before final quota is decided

Both taxi industry leaders and Uber sound alarm over government’s latest step towards regulating service, even before final quota is decided