Officials in Hong Kong announced Tuesday they will offer 10,000 new vehicle permits for drivers working with ride-sharing platforms such as Uber, representing roughly half of what transportation industry groups had requested.
Currently, Hong Kong operates approximately 18,000 licensed taxis and limits private car-hire permits to 1,500 vehicles, with these drivers able to accept rides through mobile apps. However, additional drivers working through these platforms operate illegally and have previously faced criminal charges, despite being widespread throughout the city.
Hong Kong officials revealed specifics of their regulatory plan last summer to formalize oversight of the industry, responding to years of lobbying from taxi operators.
The Smart Transportation Alliance, representing ride-hailing companies and other transport businesses, had requested in May that authorities approve 20,500 new vehicle permits during the initial rollout phase.
However, in documentation presented Tuesday to lawmakers, Hong Kong’s Transport and Logistics Bureau stated that limiting permits to 10,000 would be reasonable and suitable, considering both passenger needs and public road capacity. Officials indicated they would reassess the limit later to determine if modifications are necessary.
City legislators approved legislation last year mandating licenses and permits for ride-hailing platforms and their vehicles and drivers. When issuing licenses, Hong Kong’s transport commissioner may evaluate companies based on their track record, financial stability and planned regional investments. Licensed operators must provide “proper and efficient” service.
Driver requirements include being at least 21 years old, holding a driver’s license for a minimum of one year, maintaining a clean record without serious traffic violations over five years, and successfully completing an examination.
According to Tuesday’s announcement, most new ride-hailing rules will take effect in August, with remaining provisions implemented by August 2027. At that point, all platforms must obtain licenses and verify that their associated vehicles and drivers hold proper permits.
The proposals require companies to implement technology such as facial recognition systems to confirm drivers match the registered vehicle owners.
Law enforcement has previously arrested several Uber drivers suspected of operating without permits, and in 2018, more than two dozen drivers received fines.
Many taxi operators have historically opposed platforms like Uber, viewing them as competitors that harm their livelihoods. However, Uber, which launched Hong Kong operations in 2014, maintains popularity in the financial center, where numerous residents express dissatisfaction with taxi service quality. Uber has recently incorporated licensed taxi drivers into its platform.
In earlier legislative submissions, Uber’s Hong Kong division stated it maintains over 30,000 active drivers citywide over the past year. The company warned that even with 15,000 permits issued and enforced, booking wait times during peak periods could double from current levels, with fares potentially increasing up to 70%.
Uber said in a Tuesday statement that the legislative proposal represents an important step toward establishing clear regulations, but noted the initial quota falls “significantly lower” than necessary to satisfy rider demand. The company added that more than 20,000 people would lose earning opportunities under the proposals.
“This legislation is just a start. We hope to continue working closely with the government on an efficient allocation framework and a practical review mechanism that allows the system to evolve over time,” the company stated.
