Chinese ride-hailing giants back Hong Kong plan to cap permits at 10,000

Two mainland Chinese ride-hailing operators in Hong Kong have backed a controversial plan to regulate the industry by capping vehicle permits at 10,000, a figure the city’s largest American business chamber considers insufficient. In submissions to the Legislative Council on Monday and in recent days, Amap and Didi Chuxing said they supported the Transport and Logistics Bureau’s proposed cap as part of a new regulatory regime scheduled to be passed by lawmakers in July. Amap said the government’s cap “fully considered” Hong Kong’s urban conditions, balancing demand while “avoiding cutthroat competition” and road congestion arising from unrestricted licensing. “Amap highly recognises the prudent attitude of ‘total volume control and dynamic assessment’,” it said in its submission to the Legco. The company added that it would leverage its capabilities to provide strong data support for the government’s subsequent dynamic assessments. Amap is owned by Alibaba Group Holding, which also owns the South China Morning Post. Didi said it understood that formulating and implementing the new scheme must account for safety, order, stability and passenger needs. “Advancing online ride-hailing regulation prudently in the initial phase will help the regime start smoothly, allowing all sectors of society to gradually adapt to the newly established regulatory framework,” it said. Didi also called on authorities to review the scheme “in short cycles” using a “small steps, fast strides” approach. The proposed cap has drawn criticism from multiple sides. Taxi drivers argue 10,000 permits are too many, while Uber, the city’s dominant ride-hailing platform, says the number is too low, despite the government’s pledge to adjust it dynamically based on market conditions. The proposal also sets out requirements for ride-hailing drivers, vehicles, insurance, safety and penalties for non-compliance. In a document obtained by the South China Morning Post, the American Chamber of Commerce in Hong Kong said the initial quota of 10,000 licences might not fully reflect the market demand for ride-hailing services and could potentially increase wait times and prices. It called for a regular, data-driven review mechanism for the quotas and urged authorities to remain open to future capacity increases and adjustments based on real-time market reactions and evolving consumer demand. “We also hope the authorities can prioritise licence allocation to existing, highly engaged drivers to maintain immediate service quality and stability,” it said. However, Secretary for Transport and Logistics Mable Chan has said authorities will not favour existing ride-hailing drivers, such as those working with Uber, citing concerns over encouraging illegal activities and practical implementation difficulties. Other stakeholders, including taxi owners and unions, have submitted views. The taxi industry widely challenged the 10,000 number, arguing it should be lower. The Hong Kong Smart Mobility Chamber of Commerce analysed data from electronic meters of more than 1,930 taxis between May 11 and 17, and found they had completed 331,774 trips. It also found on average that during the week, 29.25 per cent of taxis were carrying passengers at any one time, and the rest sat idle. “In other words, on average, seven out of 10 taxis were idled on a daily basis during the week,” it said. The chamber, which aims to bring together traditional transport services and emerging technology, said the figures proved that taxi capacity remained underutilised, with existing on-road supply already showing signs of structural oversupply. Meanwhile, the Motor Transport Workers General Union said the government’s decision to offer 10,000 licences “contains grave misjudgments”. Once ride-hailing platforms launched aggressive user-acquisition campaigns, such as free trips and big discounts, drivers would devote more time to doing ride-hailing, the union said. The Hong Kong Institute of Urban Design, however, said the cap lacked international precedent, noting that the proposed ratio of licensed ride-hailing vehicles to taxis was roughly 0.56 to one. In comparison, Shenzhen has about six ride-hailing vehicles for each taxi, Singapore has 4.5 and London has seven. It added that the cap was set too low and unlikely to be reached, as the owner-driver requirement made most current drivers ineligible, meaning effective supply on day one could be well below 10,000, at precisely the moment demand would rise with legalisation. The institute warned that an unintended consequence of the proposals would be more cars on the road, not fewer, as undersupplied and unaffordable ride-hailing would activate Hong Kong’s dormant private car fleet and incentivise new car purchases, directly contradicting the government’s own goals on congestion, air quality and carbon neutrality. The Public Transport Think Tank of Hong Kong said the 10,000-vehicle figure was deeply disappointing, arguing that ride-hailing should be regulated on the basis of market demand and economic factors rather than on numerical caps.

Chinese ride-hailing giants back Hong Kong plan to cap permits at 10,000

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Amap, Didi Chuxing support government’s proposed cap as part of new regulatory regime scheduled to be passed by lawmakers in July

Amap, Didi Chuxing support government’s proposed cap as part of new regulatory regime scheduled to be passed by lawmakers in July