More than a decade since the first ride-hailing service took to Hong Kong’s streets, the law is finally catching up. Government proposals could legalise and regulate ride-hailing apps by the
end of next year. Occasional crackdowns on illegal ride-hailing services have done nothing to dampen public demand for them, amid persistent criticism of the taxi industry’s safety and service standards. At the same time, cabbies have complained of unfair competition and falling returns. The government rightly decided it was time to end this state of affairs. The smashing of a
syndicate that hired mainland drivers for ride-hailing apps served to underline the urgency.
Secretary for Transport and Logistics Mable Chan has said the
proposed regulatory framework, now under scrutiny by lawmakers, will help address the problem of illegal drivers by restricting permits to registered vehicle owners and also prevent the speculative trading of licences. To encourage competition, drivers with registered vehicles could join multiple ride-hailing platforms.
Under the proposed new measures, ride-hailing platforms must obtain a service licence and drivers need a vehicle permit. “If we bind the driver to the vehicle, then the platform can regulate it and prevent illegal workers from providing ride-hailing services,” Chan said.
Drivers must be aged 21 or above, have held a private driving licence for at least one year and have had no serious traffic incidents in the past five years. Both operators and drivers will be subject to licence renewal every five years, and vehicles once a year, to prevent the speculation that was rampant in the taxi trade.
The framework was first disclosed nearly two months ago. The latest decision to extend a ride-hailing vehicle’s maximum age from seven to
12 years, without relaxing the focus on safety, is a sensible measure to boost the supply of drivers.
Chan said the authorities hoped that by regulating the trade, more ride-hailing platforms would offer their services in Hong Kong and inject new blood into the industry.
